Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 61

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 61
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OLIDATED FINANCIAL STATEMENTS

NOTE 3. BITCOIN

The following table presents information about the Company’s bitcoin (in thousands):For the Year Ended December 31,20242023Opening balance$32,978 $6,283 Cumulative effect upon adoption of ASU 2023-08- 209 Bitcoin received from equity investees18,089 317 Bitcoin received from mining activities151,296 126,319 Bitcoin received from loan9,976 - Proceeds from sale of bitcoin(148,870)(111,188)Bitcoin loan payments(1,977)- Realized gains on sale of bitcoin(1)51,548 7,739 Unrealized gains on bitcoin11,313 3,299 Bitcoin transferred to collateral, net(31,702)- Ending balance$92,651 $32,978 (1) Realized losses from sale of bitcoin was immaterial in all periods presented.The Company held approximately 994 and 780 bitcoin at December 31, 2024, and December 31, 2023, respectively. The associated fair value and cost basis of bitcoin held was $92.7 million, and $79.8 million, respectively, at December 31, 2024, and $33.0 million, and $30.9 million, respectively at December 31, 2023. Fair value of bitcoin is estimated using the closing price, which is a Level 1 input (i.e., an observable input such as a quoted price in an active market for an identical asset). The Company accounts for bitcoin on a first-in-first-out (“FIFO”) basis.As of December 31, 2024, 345 bitcoin with a fair value of $32.2 million were pledged as collateral related to the Coinbase Overnight Credit Facility. Restrictions on this bitcoin pledged as collateral will lapse upon repayment of the outstanding balance drawn on this facility. The collateral pledged related to the Coinbase Overnight Credit Facility can be rehypothecated and therefore is derecognized from the Company’s ending bitcoin balance, and recorded in Receivable for bitcoin collateral on the Company’s consolidated balance sheet. Any difference in cost basis of the bitcoin transferred is recorded in Realized gains on sale of bitcoin on the Company’s consolidated statement of operations.As of December 31, 2023, 10 bitcoin with a fair value of $0.4 million were pledged as collateral related to bitcoin hedging strategies. Collateral