Company: CIFRW
Filing Date: 2025-04-14
Form Type: CORRESP
Source: 0001193125-25-080239
Chunk: 6

Company: Cipher Mining Inc.
Filing Date: 2025-04-14
Form: CORRESP
Chunk 6
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 below the Company’s cost. As such, at the time of contribution, the Company recorded losses in its “Equity in net losses of equity investees” line item, which caused basis differences in the Company’s investments in the joint ventures as disclosed in Note 8 in the Company’s Annual Report on Form 10-Kfor the fiscal year ended December 31, 2022: “As of December 31, 2022, the Company had contributed equipment with a total cost of $127.8 million related to its contributions of 12,953, 3,254 and 3,254 miners and other mining equipment to the Alborz, Bear and Chief Facilities, respectively. The majority of the contributed miners had a fair value that was lower than the cost paid by the Company to obtain them, and the Company recognized losses at the time of the contributions, which totaled $33.4 million for the year ended December 31, 2022. These losses were recorded within equity in losses of equity investees on the consolidated statement of operations and represent basis differences related to the Company’s investments in Alborz LLC, Bear LLC and Chief LLC which recorded the contribution of the equipment from the Company at the historical cost paid by the Company to obtain the equipment. As Alborz LLC, Bear LLC and Chief LLC depreciate the historical cost of the miners on their respective financial statements over the expected depreciation period of five years, the Company will accrete these basis differences over the same period and will record the accretion amount for each reporting period within equity in losses of equity investees on its consolidated statements of operations until the miners are fully depreciated and the corresponding basis differences are fully accreted.” Because those contributions occurred in 2022, that background disclosure about the origin of those basis differences does not appear in the Company’s Annual Report.

| • |     | Assuming that equity method accounting for your investments with no impairment of miners before being                                                                                                                     
 contributed is appropriate, explain to us why there is a basis difference upon contribution of the miners. Elaborate on why the LLCs recorded the contributed miners at your historical cost and not at their fair value. |

Response: The Company respectfully acknowledges the Staff’s comment. As discussed in the preceding response, the Company recorded an expense at the time of the contribution of the equipment to the joint ventures. Consistent with the JV Agreements, the Company received an equity value equal to the Company’s costs of such equipment. Additionally, all the joint ventures were formed prior