Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 303

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 303
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 Company accounts for its 49% equity ownership in each of Alborz LLC, Bear LLC and Chief Mountain LLC (the “Data Center LLCs”) using the equity method of accounting. The Company’s joint venture partner holds the remaining equity in each Data Center LLC entity.During fiscal year 2022, the Company contributed miners and mining equipment to the Data Center LLCs. The contributed miners had a fair value that was below the cost paid by the Company to obtain them. As such, the Company recognized a loss at the time of the contributions, resulting in basis differences of the miners between the Company and the Data Center LLCs, which recorded the contributions of equipment from the Company at historical cost. The Company accretes these 

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CIPHER MINING INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited)

basis differences over the life of the miners and records the accretion amount for each reporting period within Equity in losses of equity investees on its statements of operations. As of June 30, 2025, the Company had remaining basis differences totaling approximately $7.1 million that have not yet been accreted.Activity in the Company’s investments in equity investees during the six months ended June 30, 2025, and 2024, consisted of the following (in thousands):For the Six Months Ended June 30,20252024Opening balance$53,908 $35,258 Cost of contributed mining equipment and other capital contributions12,842 20,437 Accretion of basis differences related to miner contributions3,199 3,342 Bitcoin received from equity investees(13,857)(5,907)Equity in net losses of equity investees(10,191)(3,181)Ending Balance$45,901 $49,949 

NOTE 8. INTANGIBLE ASSETS

The Company’s intangible assets consisted of the following (in thousands):June 30, 2025Gross Carrying AmountAccumulated Amortization Net Carrying AmountStrategic contract$7,000 $(554)$6,446 Capitalized software3,389 (606)2,783 Total$10,389 $(1,160)$9,229 December 31, 2024Gross Carrying AmountAccumulated AmortizationNet Carrying AmountStrategic contract$7,000 $(379)$6,621 Capitalized software2,653 (393)