Cipher Mining (US:CIFR)2025-05-06 13:08Revenue and Financial Performance - Revenue for the three months ended March 31, 2025, was $49.0 million, an increase of 1.8% from $48.1 million in the same period of 2024, driven by higher average bitcoin prices despite a decrease in bitcoin mined due to the halving [165]. - The net loss for the three months ended March 31, 2025, was $39.0 million, compared to a net income of $39.9 million in the same period of 2024, reflecting a decrease of $78.9 million [182]. - Adjusted earnings for the three months ended March 31, 2025, were $6.138 million, down from $63.030 million in 2024 [193]. Costs and Expenses - The cost of revenue for the same period was $14.9 million, slightly up from $14.8 million in 2024, primarily due to fixed power costs under the Power Purchase Agreement [166]. - Compensation and benefits increased to $14.3 million in Q1 2025, up $1.3 million from $13.0 million in Q1 2024, attributed to a rise in headcount [167]. - General and administrative expenses rose to $9.0 million, an increase of $2.9 million compared to $6.1 million in the prior year, mainly due to higher legal and professional fees [168]. - Depreciation and amortization expenses surged to $43.5 million, up $26.3 million from $17.2 million in Q1 2024, due to increased mining equipment and a change in estimated useful life of miners [169]. - Share-based compensation expense for the three months ended March 31, 2025, was $9.132 million, compared to $8.317 million in 2024 [193]. Cash Flow and Liquidity - Cash used in operations was $47.2 million for Q1 2025, an increase of $20.6 million from $26.6 million in Q1 2024 [182]. - Cash used in investing activities decreased by $13.7 million to $17.3 million for the three months ended March 31, 2025, compared to $31.0 million for the same period in 2024 [183]. - Cash flows from financing activities increased by $22.0 million to $82.1 million for the three months ended March 31, 2025, driven by a $50.0 million increase in proceeds from treasury stock reissued for PIPE investment [184]. - As of March 31, 2025, the company had cash and cash equivalents of $23.2 million and total stockholders' equity of $734.8 million [177]. - The company has a secured line of credit of up to $25.0 million under the Coinbase Overnight Credit Facility, with $25.0 million drawn as of March 31, 2025 [178]. Inventory and Assets - The ending balance of Bitcoin inventory as of March 31, 2025, was 630 BTC, valued at $52.0 million [162]. - The company held 630 bitcoin in inventory as of March 31, 2025, with a potential $3.9 million increase in net loss from a 10% decrease in bitcoin price [199]. Lease and Agreements - Monthly rent payments for the amended lease agreement for office space are approximately $0.2 million, with a term through May 2029 [185]. - The Combined Luminant Lease Agreement commenced on November 22, 2022, with an initial term of five years and an amended payment schedule totaling $19.7 million due over the remaining four-year period starting in July 2023 [189]. Other Financial Metrics - A 10% decrease in power prices would result in an estimated $17.1 million decrease in the estimated fair value of the derivative asset and an increase in net loss for the three months ended March 31, 2025 [200]. - The company had a $31.6 million decrease in proceeds from the issuance of common stock during the three months ended March 31, 2025 [184].