Cipher Mining (CIFR) - 2024 Q1 - Quarterly Results

Cipher Mining First Quarter 2024 Business Update Cipher Mining reports strong Q1 2024 financial results and accelerated expansion plans, targeting significant hash rate growth by 2025 Financial and Operational Highlights Cipher Mining achieved record GAAP net income and strong adjusted earnings in Q1 2024, while expanding self-mining capacity and advancing new data center construction Q1 2024 Key Financial Metrics | Metric | Amount (USD) | | :--- | :--- | | GAAP Net Income | $40 million | | Non-GAAP Adjusted Earnings | $63 million | | Revenues | $48 million | - The company is expanding its Bear and Chief JV data centers by 30 MW each, which is expected to add ~1.25 EH/s of self-mining capacity and be completed in Q2 2024[5] - Construction of the new 300 MW Black Pearl data center is underway, with land cleared and leveled, and it is on track for energization in 2025[1][5] Growth Strategy and Outlook Cipher is accelerating its 300 MW Black Pearl data center expansion, projecting significant self-mining hash rate growth to ~25.1 EH/s by end of 2025 Hash Rate Growth Projections | Timeline | Projected Self-Mining Hash Rate | | :--- | :--- | | Current | ~7.7 EH/s | | End of Q3 2024 | ~9.3 EH/s | | End of 2025 | ~25.1 EH/s | - Due to strong progress and financial position, the company has accelerated its plans to build the entire 300 MW Black Pearl data center in 2025, with concrete foundations starting this month[1] - Management is confident that its execution and best-in-class unit economics will position Cipher as a top miner in the post-halving environment[1] Financial Statements Cipher's Q1 2024 financial statements reflect significant revenue growth, a shift to net income, increased assets from cash and bitcoin, and positive cash flow from financing Condensed Consolidated Statements of Operations Q1 2024 saw Cipher's revenue increase to $48.1 million, achieving $46.8 million operating income and $39.9 million net income, a significant turnaround from Q1 2023 Q1 2024 vs Q1 2023 Statement of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue - bitcoin mining | $48,137 | $21,895 | | Operating income (loss) | $46,786 | $(4,121) | | Net income (loss) | $39,900 | $(4,553) | | Net income (loss) per share - diluted | $0.13 | $(0.02) | Condensed Consolidated Balance Sheets As of March 31, 2024, total assets increased to $677.1 million, driven by higher cash and bitcoin holdings, resulting in $600.9 million in stockholders' equity Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $88,675 | $86,105 | | Bitcoin | $123,307 | $32,978 | | Total assets | $677,141 | $566,137 | | Total liabilities | $76,217 | $74,801 | | Total stockholders' equity | $600,924 | $491,336 | Condensed Consolidated Statements of Cash Flows Q1 2024 saw $26.6 million net cash used in operations and $31.0 million in investing, offset by $60.2 million from financing, leading to a $2.6 million net cash increase Q1 2024 vs Q1 2023 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(26,636) | $(10,142) | | Net cash (used in) provided by investing activities | $(30,957) | $2,618 | | Net cash provided by (used in) financing activities | $60,163 | $(481) | | Net increase (decrease) in cash | $2,570 | $(8,005) | Non-GAAP Financial Measures Cipher's Q1 2024 Non-GAAP Adjusted Earnings reached $63.0 million, a significant increase from Q1 2023, after adjusting for various non-cash items Reconciliation of Net Income (Loss) to Adjusted Earnings (in thousands) | Reconciliation Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income (loss) | $39,900 | $(4,553) | | Change in fair value of derivative asset | $(7,359) | $(5,328) | | Share-based compensation expense | $8,317 | $8,810 | | Depreciation and amortization | $17,244 | $11,655 | | Deferred income tax expense | $5,178 | $53 | | Other adjustments | $(250) | $(2,223) | | Adjusted earnings | $63,030 | $8,414 | Other Information This section provides general corporate information, including business overview, forward-looking statement disclaimers, and investor relations contact details - Cipher is an emerging technology company focused on developing and operating bitcoin mining data centers to strengthen the Bitcoin network's infrastructure[11] - The press release contains forward-looking statements subject to risks and uncertainties, and readers are cautioned not to place undue reliance on them[3][7][12] - A conference call and webcast were scheduled for 8:00 a.m. Eastern Time on May 7, 2024, to discuss the results and outlook[2][10]