Company: CIFRW
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001819989-25-000037
Chunk: 206

Company: Cipher Mining Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 206
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 in losses of equity investees consists of our 49% share in the earnings (losses) generated by our three partially-owned mining sites, and the accretion of the basis differences in our investments in the equity investees that resulted from contributions of miners during the year ended December 31, 2022. We are accreting these basis differences over the five-year useful life of the miners. For the three months ended March 31, 2025, we recognized roughly $4 million as our 49% share of a one-time impairment charge on the miners of Alborz LLC, net of accretion.

Unrealized (losses) gains on fair value of bitcoin

Unrealized losses on fair value of bitcoin totaled $20.2 million for the three months ended March 31, 2025, compared to Unrealized gains on fair value of bitcoin of $40.6 million for the three months ended March 31, 2024. Unrealized (losses) gains on fair value of bitcoin is driven by the cost of bitcoin mined compared to the price of bitcoin at the end of the period.

Realized gains on sale of bitcoin

Realized gains on sale of bitcoin totaled $12.2 million for the three months ended March 31, 2025. In the current period this was related to gains recognized on bitcoin sales. We did not sell bitcoin in the prior year period.

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Other expense

Other expense totaled $0.7 million for the three months ended March 31, 2025, compared to $1.3 million of Other expense for the three months ended March 31, 2024. In the prior year period we experienced losses from hedging strategies as part of treasury management.

Income tax benefit (expense)

For the three months ended March 31, 2025, we recorded a provision for income taxes of $0.1 million as a result of projected income for the current year in the jurisdictions which we operate. For the three months ended March 31, 2024, we recorded a provision for income taxes of $5.6 million.

Liquidity and Capital Resources

We had cash used in operations of $47.2 million for the three months ended March 31, 2025. As of March 31, 2025, we had cash and cash equivalents of $23.2 million, total stockholders’ equity of $734.8 million and an accumulated deficit of $220.4 million. We