Company: CIFRW
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001819989-25-000037
Chunk: 160

Company: Cipher Mining Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part II, Item 5
Chunk 160
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 rates and discount rate assumptions). The following table presents the changes in the estimated fair value of the derivative asset measured using significant unobservable inputs (Level 3) for the three months ended March 31, 2025 and 2024 (amounts in thousands):Three Months Ended March 31,20252024Opening balance$85,670 $93,591 Change in fair value7,330 7,359 Ending balance$93,000 $100,950 Level 3 liabilityThe Company’s Private Placement Warrants (as defined in Note 15. Warrants) were its only liability classified within Level 3 of the fair value hierarchy because the fair value is based on significant inputs that are unobservable in the market. 

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

The valuation of the Private Placement Warrants used assumptions and estimates the Company believes would be made by a market participant in making the same valuation. As of March 31, 2024, all Private Placement Warrants were converted to Public Warrants, and as such no Private Placement Warrants were outstanding as of March 31, 2025.The Company engaged a valuation firm to determine the fair value of the Private Placement 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 Private Placement Warrants as of the dates 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 March 31, 2025$— Balance as of December 31, 2023$250 Change in fair value(250)Balance as of March 31, 2024$— 

NOTE 18. SHORT-TERM BORROWINGS

Coinbase Master Loan AgreementThe Company has the Coinbase Master Loan Agreement, under which the Company established the Coinbase Overnight Credit Facility of $25.0 million. The Company will not incur commitment fees for unused portions of the Coinbase Overnight Credit Facility. The borrowing rate on amounts drawn against the Credit Facility is determined based on the Federal Funds