Company: CIFRW
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001819989-25-000112
Chunk: 201

Company: Cipher Mining Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part II, Item 2
Chunk 201
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 the Private Placement Warrants as of the date indicated: December 31, 2023Risk-free rate4.00%Dividend yield rate0.00%Volatility124.0%Contractual term (in years)2.7Exercise price$11.50The following table presents changes in the estimated fair value of the Private Placement Warrants (amounts in thousands):Balance as of December 31, 2024$— Change in fair value— Balance as of September 30, 2025$— Balance as of December 31, 2023$250 Change in fair value(250)Balance as of September 30, 2024$— 

32

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

2031 Note Conversion OptionThe Company’s 2031 Note Conversion Option is classified within Level 3 of the fair value hierarchy because the fair value is based on significant inputs that are unobservable in the market. The valuation of the 2031 Note Conversion Option used assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company engaged a valuation firm to determine the fair value of the 2031 Note Conversion Option using a binomial lattice model. The following table presents significant assumptions utilized in the valuations of the 2031 Note Conversion Option as of the date indicated: September 30, 2025Volatility51.00%Risk-Free Rate3.84%Dividend Yield0.00%Contractual Term (in years)6.0Conversion Price$16.03Google WarrantsThe Company’s Google Warrants (as defined in Note 16. Warrants) were classified within Level 3 of the fair value hierarchy because the fair value is based on significant inputs that are unobservable in the market.  The valuation of the Google Warrants used assumptions and estimates the Company believes would be made by a market participant in making the same valuation.The Company engaged a valuation firm to determine the fair value of the Google Warrants using a Black-Scholes option-pricing model and the quoted price of Common Stock. The following table presents significant assumptions utilized in the valuations of the Google Warrants as of the date indicated:September 30, 2025Risk-free rate3.68%Dividend yield rate0.00%Volatility112.32%Contractual term (in years)6.0The following table presents changes in the estimated fair value of the