Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 194

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 3
Chunk 194
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 depreciation(243,568)(158,638)Property and equipment, net$473,887 $480,865 As of June 30, 2025, the Company had approximately $11.9 million of construction-in-progress primarily related to the additional construction at the Black Pearl Facility. For the six months ended June 30, 2025, $126.3 million of Construction-

17

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

in-progress related to the build out of the Black Pearl Facility was reclassified primarily into Buildings of $53.2 million with a useful life of 20 years, and Infrastructure of $71.6 million with a useful live of 10-20 years.In June 2025, as part of placing the assets related to the Black Pearl Facility into service, the Company recorded 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