Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 36

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 an asset retirement obligation for the Black Pearl Facility to restore the land to its original condition at the end of the lease for $10.7 million, to be depreciated straight-line over the estimated remaining useful lives of the assets related to the facility.Depreciation expense was approximately $43.9 million and $20.3 million respectively, for the three months ended June 30, 2025, and 2024, respectively, and included approximately $0.6 million and $0.6 million of accretion expense related to the Company’s asset retirement obligations, and $87.2 million and $37.2 million, respectively, for the six months ended June 30, 2025 and 2024, respectively, and included approximately $1.1 million and $0.9 million for the six months ended June 30, 2025 and 2024, of accretion expense related to the Company’s asset retirement obligations.

NOTE 6. DEPOSITS ON EQUIPMENT

In the fourth quarter of 2023, the Company entered into an agreement with Bitmain to purchase 7.1 EH/s of miners to be delivered in the first half of 2025 (the “Future Sales and Purchase Agreement”), all of which have been delivered with no remaining amount to be paid. In addition to amending the agreement on June 5, 2024 (such amendment, the “Supplemental Agreement”) to upgrade the miners and accelerate the delivery from the first half of 2025 to the fourth quarter of 2024, the Future Sales and Purchase Agreement also has an option to purchase an additional 8.7 EH/s in 2024. The Company paid $12.2 million upon signing the agreement in the fourth quarter of 2023 as a deposit, which can be used towards purchases under this option. On July 10, 2024, the Company entered into an agreement to further amend the Future Sales and Purchase agreement (the “Amendment Agreement”). The Amendment Agreement upgraded the miners to be purchased under the option, and extended the option expiration from December 31, 2024 to June 30, 2025.On May 16, 2025, the Amendment Agreement was subsequently amended to reduce the total amount due to Bitmain under the Future Sales and Purchase Agreement and Supplemental Agreement from $120.2 million to $108.2 million, accelerate payment due under these agreements from progress payments