Cipher Mining (US:CIFR)2022-03-04 19:15Financial Data and Key Metrics Changes - The company reported a net loss of approximately $72.1 million for the 11 months ended December 31, primarily driven by $63.8 million in stock-based compensation and $8.3 million in corporate-related expenses [25][26] - The anticipated weighted average cost for mining rigs is $42.81 per terahash, with an efficiency of 33.8 joules per terahash, and a power price of $0.0273 per kilowatt hour [22] Business Line Data and Key Metrics Changes - Cipher Mining commenced Bitcoin mining operations in February 2022, marking a transition from a pre-revenue company to an operational entity [6][8] - The company has made significant progress in deploying data centers, fulfilling commitments related to mining rigs and infrastructure [23] Market Data and Key Metrics Changes - Bitcoin prices have experienced volatility, losing about one-third of their value since reaching all-time highs in November [15] - The mining rig market is evolving, with new generations of miners being launched and competitive pricing observed in the secondary market [16] Company Strategy and Development Direction - Cipher Mining aims to be the preferred platform for the U.S. power industry to access Bitcoin mining, focusing on long-term power purchase agreements and innovative deal structures [7][9] - The company is positioning itself to take advantage of economies of scale in Bitcoin mining, negotiating better pricing for power and mining rigs [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the regulatory environment for Bitcoin, noting a growing acknowledgment of Bitcoin's role in the financial landscape [39][40] - The company is focused on cost discipline and flexibility in its operations to navigate the volatile market conditions [42] Other Important Information - Cipher Mining has signed a joint venture term sheet for an 80-megawatt site in Texas and a power purchase agreement for a 200-megawatt facility powered by solar energy [8][9] - The company is targeting carbon neutrality via offsets by the end of 2023, with a focus on renewable energy sources [34] Q&A Session Summary Question: Can you provide an update on the Bitfury situation and their chipset development? - Management confirmed a 7-year contract with Bitfury, with rigs expected to be delivered in the second half of 2022, but they are exercising flexibility by not moving forward with the 2022 purchase [28] Question: What is the power setup at the Alborz site? - Alborz is powered entirely by wind, with a back-to-back power purchase agreement in place, and the site is sized appropriately to manage uptime based on historical wind production [30][31] Question: What is the anticipated renewable energy mix for 2022? - The company expects to have about half the typical emissions per megawatt hour in the U.S., with a mix of wind, natural gas, and grid connections across its sites [34] Question: Has there been any change in the timing or supply for Bitmain and MicroBT systems? - There have been no changes to the deployment schedule for Bitmain and MicroBT, with 87,000 rigs contracted [37] Question: Are there inflationary pricing pressures on deployment costs? - The increase in the average anticipated cost of mining rigs is attributed to the removal of Bitfury rigs, not inflationary pressures [38]