Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 146

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 2
Chunk 146
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’s asset retirement obligations.

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”), all of which have been delivered with no remaining amount to be paid. 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.On May 16, 2025, the Amendment Agreement was subsequently amended to reduce the total amount due to Bitmain under the Future Sales and Purchase Agreement and Supplemental Agreement from $120.2 million to $108.2 million, accelerate payment due under these agreements from progress payments through November 2025 to one payment due within 14 days of the execution of the new amendment, and provide the Company with a call option to purchase 493 bitcoin for $60.1 million with an expiration of August 30, 2025 and a call option to purchase 493 bitcoin for $60.1 million with an expiration of November 30, 2025 contingent upon exercising the first option (the “Bitmain Bitcoin Options”). The Company has paid nonrefundable deposits for miners of $165.9 million for this order as of June 30, 2025. The Bitmain Bitcoin Options are accounted for as derivatives and are classified in Prepaid expenses and other current assets as the expiration is within one year, and are carried at fair value. The loss on fair value of the Bitmain Bitcoin Options for the three and six months ended June 30, 2025 was $3.8 million and is recorded in Other expense in the condensed