Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 95

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 1A
Chunk 95
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 aligned with the Luminant Power Agreement. Financing for use of the land and substation is provided by Luminant affiliates.At the end of the lease term for the Interconnection Electrical Facilities, the substation will be sold back to Luminant’s affiliate, Vistra Operations Company, LLC at a price to be determined based upon bids obtained in the secondary market.Black Pearl Facility LeaseThe Company and its wholly-owned subsidiary, Cipher Black Pearl LLC (“Black Pearl”), assumed a lease for a 70 acre plot of land in Winkler County, Texas, for the purpose of constructing a data center, and ancillary infrastructure to construct the Black Pearl Facility. The initial term of the lease is ten years, and includes four consecutive renewal options for ten years each.Reveille Facility LeaseThe Company and its wholly-owned subsidiary, Cipher Reveille LLC (“Reveille”), assumed a lease for a 52 acre plot of land in LaSalle, Texas, for the purpose of constructing a data center, and ancillary infrastructure to construct the Reveille Facility. The initial term of the lease is ten years, and includes two consecutive renewal options for ten years each.Office and warehouse leasesThe Company leases office space for its headquarters in New York, New York, and office space in Charleston, South Carolina, and Denver, Colorado.In April 2025, the Company entered into a commercial lease for a warehouse in Odessa, TexasAll of the Company's office leases are classified as operating leases.

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

Additional lease informationComponents of the Company’s lease expenses are as follows (in thousands):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Finance leases:Amortization of ROU assets (1)$761 $761 $1,522 $1,522 Interest on lease liability272 370 570 762 Total finance lease expense1,033 1,131 2,092 2,284 Operating leases:Operating lease expense660 548 1,285 987 Total operating lease expense660 548 1,285 987 Total lease expense$1,693 $1,679 $3,377 $3,271 (1)Amortization of finance lease ROU asset is included within depreciation expense.The Company did not incur any variable lease costs during any of the periods presented.Other information related to the Company’s leases is shown