Company: CIFRW
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001819989-25-000037
Chunk: 184

Company: Cipher Mining Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 184
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 606 Construction-in-progress120,234 82,017 Total cost of property and equipment678,217 639,503 Less: accumulated depreciation(200,245)(158,638)Property and equipment, net$477,972 $480,865 As of March 31, 2025, the Company has added approximately $120.2 million of construction-in-progress related to the build-out of the Black Pearl Facility. Depreciation expense was approximately $43.3 million and $17.1 million, respectively, for the three months ended March 31, 2025 and 2024, respectively, and included approximately $0.5 million and $0.8 million for the three months ended March 31, 2025 and 2024, of accretion expense related to the Company’s asset retirement obligation for the Odessa Facility.

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”). The Company has a deposit of $1.1 million remaining on this order. 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 Sales and Purchase Agreement also has an option to purchase an additional 8.7 EH/s in 2024. The Company paid $12.2 million upon signing the agreement in the fourth quarter of 2023 as a deposit, which can be used towards purchases under this option. On July 10, 2024, the Company entered into an agreement to further amend the Future Sales and Purchase agreement (the “Amendment Agreement”). The Amendment Agreement upgraded the miners to be purchased under the option, and extended the option expiration from December 31, 2024 to June 30, 2025. The Company subsequently executed the option under this agreement and has paid nonrefundable deposits of $93.4 million for this order as of March 31, 2025.

15

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

In the second quarter of 2024, the Company entered into an agreement with