Cipher Mining (CIFR) - 2025 Q2 - Quarterly Results

Executive Summary & Business Update Cipher Mining reported strong Q2 2025 financials, with significant self-mining capacity growth and strategic advancements in the Black Pearl project for both bitcoin mining and HPC Second Quarter 2025 Financial Highlights Cipher Mining reported Q2 2025 revenue of $44 million and non-GAAP Adjusted Earnings of $30 million, with Black Pearl Phase I exceeding growth targets to ~16.8 EH/s self-mining capacity Q2 2025 Financial and Operational Highlights | Metric | Q2 2025 Value | | :-------------------------- | :------------ | | Revenue | $44 million | | Non-GAAP Adjusted Earnings | $30 million | | Self-mining capacity (end of Q2 2025) | ~16.8 EH/s | | Self-mining capacity target (end of Q3 2025) | ~23.5 EH/s | CEO's Strategic Commentary CEO Tyler Page emphasized consistent execution and strategic investment, with Black Pearl Phase I hashing ahead of schedule and Phase II designed for flexible AI compute and hydro-bitcoin mining - Black Pearl Phase I commenced hashing ahead of schedule, equipped with latest-generation rigs from two fully funded orders[3] - Black Pearl Phase II strategic plan: designed to support both AI compute and hydro-bitcoin mining, with infrastructure pre-positioning for efficient conversion to Tier 1, 2, or 3 specifications based on tenant leasing preferences[3] - Long-term goal for Black Pearl Phase II: fully leased by HPC tenants, while preserving flexibility for near-term bitcoin mining to monetize access to power quickly[4] - Company pipeline: 2.6-gigawatt site capacity, positioning Cipher to become a leading developer of HPC data centers and a standard-setter in bitcoin mining[4] Key Operational and Financial Achievements Cipher energized Black Pearl Phase I (150 MW), achieved ~16.8 EH/s self-mining capacity, secured miner orders, completed a $172.5 million convertible note offering, and is developing Black Pearl Phase II for hydro-bitcoin mining and HPC compute - Energized and commenced hashing at Black Pearl Phase I, the first 150 MW of the 300 MW site[5] - Full fleet delivered ~16.8 EH/s of self-mining capacity at the end of Q2 2025, on track to deliver ~23.5 EH/s by the end of Q3 2025[5] - Executed two fully funded orders to purchase latest-generation miners for Black Pearl, with deliveries expected by the end of Q3 2025[5] - Successfully completed $172.5 million convertible note offering[5] - Developing design and construction plans for Black Pearl Phase II, envisioning 150 MW of infrastructure to support both hydro-bitcoin mining and HPC compute applications[5] Q2 2025 Net Loss and Adjusted Earnings | Metric | Q2 2025 Value | | :-------------------------------- | :------------ | | Net Loss | $46 million | | Net Loss per share | $0.12 | | Adjusted Earnings | $30 million | | Adjusted Earnings per diluted share | $0.08 | Company Information This section provides an overview of Cipher Mining's business, disclaimers regarding forward-looking statements and non-GAAP financial measures, and investor and media contact information About Cipher Mining Cipher Mining specializes in developing and operating industrial-scale data centers for bitcoin mining and HPC hosting, aiming to be a market leader in innovation across bitcoin mining growth, data center construction, and HPC hosting partnerships - Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting[7] - Aims to be a market leader in innovation, including bitcoin mining growth, data center construction, and as a hosting partner to the world's largest HPC companies[7] Forward-Looking Statements This section provides a standard disclaimer regarding forward-looking statements, which are based on estimates and assumptions and subject to risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are based upon estimates and assumptions that are inherently uncertain and subject to risks, uncertainties, and other factors that could cause actual results to differ materially[9] - Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation to update or revise them, except as required by law[10] Non-GAAP Financial Measures Explanation This section explains supplemental non-GAAP financial measures like Adjusted Earnings, which exclude specific non-cash and non-recurring items, used internally for performance evaluation but not as GAAP replacements - Non-GAAP financial measures (Adjusted Earnings/Loss, Adjusted EPS) exclude: non-cash change in fair value of derivative asset, share-based compensation expense, depreciation and amortization, deferred income tax expense, non-recurring gains and losses, and non-cash change in fair value of warrant liability[12] - Management uses these non-GAAP measures internally to understand, manage, and evaluate business performance and to facilitate comparison with competitors[12] - Non-GAAP measures are not GAAP measurements, are subject to material limitations, and should be read only in conjunction with condensed consolidated financial statements prepared in accordance with GAAP[13] Investor and Media Contacts This section provides contact information for investor relations and media inquiries - Investor Contact: Courtney Knight, Head of Investor Relations at Cipher Mining (Courtney.knight@ciphermining.com)[14] - Media Contact: Ryan Dicovitsky, Dukas Linden Public Relations (CipherMining@DLPR.com)[15] Condensed Consolidated Financial Statements This section presents Cipher Mining's condensed consolidated balance sheets, statements of operations, and reconciliation of non-GAAP financial measures for the reported periods Condensed Consolidated Balance Sheets Cipher Mining's balance sheet shows total assets increased to $1,018,759 thousand as of June 30, 2025, driven by increases in cash, bitcoin, and equipment deposits, alongside higher long-term borrowings Condensed Consolidated Balance Sheet Summary (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :----- | | Total Assets | $1,018,759 | $855,446 | +19.1% | | Cash and cash equivalents | $62,704 | $5,585 | +1022.7% | | Bitcoin | $112,089 | $92,651 | +21.0% | | Deposits on equipment | $183,028 | $38,872 | +370.8% | | Total Liabilities | $269,855 | $173,493 | +55.5% | | Long-term borrowings, net | $167,113 | $- | N/A | | Total Stockholders' Equity | $748,904 | $681,953 | +9.8% | Condensed Consolidated Statements of Operations For Q2 2025, Cipher Mining reported $43,565 thousand in bitcoin mining revenue, an 18.4% increase year-over-year, but incurred a net loss of $45,781 thousand due to higher depreciation and negative derivative asset fair value changes Condensed Consolidated Statements of Operations (Three Months Ended June 30, in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Revenue - bitcoin mining | $43,565 | $36,808 | +18.4% | | Cost of revenue | $(15,330) | $(14,281) | +7.3% | | Depreciation and amortization | $(44,086) | $(20,251) | +117.7% | | Change in fair value of derivative asset | $(15,480) | $21,980 | N/A (swing from gain to loss) | | Operating (loss) income | $(45,243) | $(16,171) | N/A (increased loss) | | Net (loss) income | $(45,781) | $(15,291) | N/A (increased loss) | | (Loss) income per share - basic and diluted | $(0.12) | $(0.05) | N/A (increased loss) | Condensed Consolidated Statements of Operations (Six Months Ended June 30, in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Revenue - bitcoin mining | $92,524 | $84,945 | +8.9% | | Net (loss) income | $(84,756) | $24,609 | N/A (swing from income to loss) | | (Loss) income per share - basic and diluted | $(0.23) | $0.08 | N/A (swing from income to loss) | Non-GAAP Financial Measures Reconciliation Cipher Mining reported Adjusted Earnings of $30,349 thousand ($0.08 per diluted share) for Q2 2025, a significant improvement from an Adjusted Loss in Q2 2024, highlighting the impact of non-cash items on GAAP net loss Non-GAAP Financial Measures Reconciliation (Three Months Ended June 30, in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Net (loss) income (GAAP) | $(45,781) | $(15,291) | N/A (increased loss) | | Change in fair value of derivative asset | $15,480 | $(21,980) | N/A | | Share-based compensation expense | $10,493 | $13,337 | -21.3% | | Depreciation and amortization | $44,086 | $20,251 | +117.7% | | Adjusted earnings (loss) (Non-GAAP) | $30,349 | $(3,490) | N/A (swing from loss to earnings) | | Adjusted earnings (loss) per diluted share | $0.08 | $(0.01) | N/A (swing from loss to earnings) | Non-GAAP Financial Measures Reconciliation (Six Months Ended June 30, in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Net (loss) income (GAAP) | $(84,756) | $24,609 | N/A (swing from income to loss) | | Adjusted earnings (loss) (Non-GAAP) | $36,487 | $59,540 | -38.7% | | Adjusted earnings (loss) per diluted share | $0.10 | $0.19 | -47.4% |