Cipher Mining (US:CIFR)2025-11-03 14:07Revenue and Profitability - Revenue for the three months ended September 30, 2025, was $71.7 million, a 197% increase from $24.1 million in the same period of 2024, driven by higher bitcoin prices and increased mining output from the Black Pearl Facility [207]. - The net loss for the three months ended September 30, 2025, was $3.3 million, compared to a net loss of $86.8 million for the same period in 2024, indicating a significant reduction in losses [206]. - Other income for the three months ended September 30, 2025, totaled $34.0 million, significantly higher than $0.8 million in the same period of 2024, primarily due to gains on the mark to market of the warrant liability [217]. - Adjusted earnings for the three months ended September 30, 2025, were $40.728 million, while for the nine months ended September 30, 2025, adjusted earnings were $76.769 million [252]. - The diluted net loss per share for the three months ended September 30, 2025, was $(0.01), compared to $(0.26) for the same period in 2024 [252]. Costs and Expenses - Cost of revenue for the three months ended September 30, 2025, was $26.7 million, up from $15.1 million in the same period of 2024, primarily due to increased power costs associated with mining activities [208]. - General and administrative expenses rose to $26.2 million for the nine months ended September 30, 2025, up 12% from $23.4 million in 2024, driven by increased legal fees related to strategic initiatives [222]. - Depreciation expense for the three months ended September 30, 2025, was $59.5 million, an increase of $30.9 million compared to $28.6 million in the same period of 2024 [211]. - Depreciation and amortization increased significantly to $147.1 million for the nine months ended September 30, 2025, up 122% from $66.1 million in 2024, due to increased miners and mining equipment [223]. - The company reported share-based compensation expense of $9.074 million for the three months ended September 30, 2025, down from $10.211 million in 2024 [252]. Assets and Inventory - Bitcoin inventory at the end of September 30, 2025, was valued at $170.3 million, with an ending balance of 1,493 bitcoins [204]. - The company held 1,493 bitcoin in inventory as of September 30, 2025, with a potential $17.0 million increase in net loss if bitcoin prices decrease by 10% [258]. Cash Flow and Financing - Cash used in operating activities increased to $153.5 million for the nine months ended September 30, 2025, up 162% from $58.5 million in 2024 [241]. - Cash flows provided by financing activities increased to $1,486.2 million for the nine months ended September 30, 2025, a substantial rise from $207.3 million in 2024, primarily due to proceeds from convertible notes [243]. - The company issued $1,300 million of 0.00% Convertible Senior Notes due 2031, with proceeds expected to finance construction at the Barber Lake facility and support high-performance computing strategy [237]. - As of September 30, 2025, the company had cash and cash equivalents of $1,207.4 million, total stockholders' equity of $783.2 million, and an accumulated deficit of $269.5 million [232]. - The company anticipates that existing financial resources and projected cash inflows will be sufficient to meet operating and capital requirements for at least 12 months [239]. Strategic Initiatives and Development - The company has a development pipeline of approximately 3.2 GW of potential capacity suitable for high-performance computing workloads [196]. - A 15-year lease agreement was executed with Amazon Web Services to provide 300 MW of capacity for AI workloads, with delivery expected in two phases starting July 2026 [200][201]. - The company acquired majority ownership of a 1-GW site in west Texas, with a targeted energization date for the interconnection facility in 2028 [199]. - The company aims to continue expanding its business by developing industrial-scale data centers for high-performance computing and pursuing strategic arrangements such as joint ventures and leasing agreements [197]. Market Risks - The company continues to manage market risks, including bitcoin price risk and power price risk, which may impact financial statements [257]. - A 10% decrease in power prices would lead to an estimated $13.1 million decrease in the fair value of the derivative asset related to the power purchase agreement, increasing net loss for the nine months ended September 30, 2025 [259]. - Equity in losses of equity investees totaled $8.5 million for the nine months ended September 30, 2025, compared to income of $1.0 million in 2024, reflecting a significant decline [227]. - Realized gains on the sale of bitcoin were $16.1 million for the nine months ended September 30, 2025, down 36% from $25.1 million in the prior year [229]. Accounting Policies - There were no significant changes in critical accounting policies or estimates as of September 30, 2025, compared to those disclosed in the 2024 Form 10-K [253]. - The change in fair value of the power purchase agreement contributed $9.030 million to adjusted earnings for the three months ended September 30, 2025 [252].