Company: CIFRW
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001819989-25-000037
Chunk: 42

Company: Cipher Mining Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 primarily of power costs at the Odessa Facility. The consistency is primarily due to our fixed cost of power under our Power Purchase Agreement.

31

Compensation and benefits

Compensation and benefits for the three months ended March 31, 2025 was $14.3 million, an increase of $1.3 million compared to $13.0 million for the three months ended March 31, 2024. The increase was primarily due to an increase in headcount year-over-year.

General and administrative

General and administrative expenses for the three months ended March 31, 2025 was $9.0 million, an increase of $2.9 million compared to $6.1 million for the three months ended March 31, 2024. The increase was primarily driven by an increase in legal fees related to strategic initiatives, and professional fees related to SOX 404 compliance as a result of losing Emerging Growth Company status during 2024.

Depreciation and amortization

Depreciation and amortization for the three months ended March 31, 2025 was $43.5 million, an increase of $26.3 million compared to Depreciation and amortization of $17.2 million for the three months ended March 31, 2024. The increase was primarily due to increased miners, and mining equipment at the Odessa Facility, as well as the change in the estimated useful life of our miners from five years to three years.

Change in fair value of derivative asset

Change in fair value of derivative asset was a $7.3 million decrease for the three months ended March 31, 2025 and was driven by the fair value of the Luminant Power Agreement. The estimated fair value of our derivative asset was derived from Level 2 and Level 3 inputs, and, due to a lack of quoted prices for similar type assets, is classified in Level 3 of the fair value hierarchy. Specifically, the discounted cash flow estimation models contain quoted spot and forward prices for electricity, as well as estimated usage rates consistent with the terms of the Luminant Power Agreement, the initial term of which is five years.

Power sales

At our Odessa Facility, we sell excess electricity that was available under the Luminant Power Agreement, but not needed in our mining operations, back to the ERCOT market through Luminant. We sold power for proceeds of $1.0 million and $1.2 million for the three months ended March 31, 2025