Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 43

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 43
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$5,585 $86,105 Restricted cash14,392 - Total cash, cash equivalents, and restricted cash shown in the statement of cash flows$19,977 $86,105 

The accompanying notes are an integral part of these consolidated financial statements.

F-9

CIPHER MINING INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. ORGANIZATION

Nature of operationsCipher Mining Inc. (“Cipher” or the “Company”) is focused on the development and operation of industrial-scale data centers for bitcoin mining and high-performance compute (“HPC”) hosting. The Company operates one wholly-owned bitcoin mining data center and jointly operates three partially-owned bitcoin mining data centers that were acquired through investments in joint ventures. The Company has acquired four new wholly-owned sites as of December 31, 2024 which have not commenced operating, and options to acquire three additional wholly-owned sites.Risks and uncertaintiesLiquidity, capital resources and limited business historyThe Company has historically experienced net losses and negative cash flows from operations; however, proceeds from sales of bitcoin are categorized as cash flows from investing activities to the extent bitcoin is sold after seven days of receipt. As of December 31, 2024, the Company had approximate balances of cash and cash equivalents of $5.6 million, working capital of $36.4 million, total stockholders’ equity of $682.0 million and an accumulated deficit of $181.4 million. The Company uses a combination of proceeds from sales of bitcoin earned by or received from its bitcoin mining data centers, short-term financing arrangements, and strategic sales of shares through “at-the-market” offerings to support its operating expenses and capital expenditures.The Company monitors its balance sheet on an ongoing basis to determine the proper mix of bitcoin retention and bitcoin sales to support its cash requirements, ongoing operations, and capital expenditures. Bitcoin is classified as a current asset on the Company’s balance sheets due to its intent and ability to sell bitcoin to support operations when needed. Approximately $87.5 million of cash was used for operating activities during the years ended December 31, 2024.During the year ended December 31, 2024, the Company paid approximately $163.0 million for deposits on equipment primarily related to new miner purchases for its Odessa Facility, and reclassified approximately $154.9 million to property and equipment related to equipment being placed into service. The Company has a master loan agreement with Coinbase Credit, Inc., as Lender, and