Company: CIFRW
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001819989-25-000037
Chunk: 200

Company: Cipher Mining Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 200
---
 Target Rate - Upper Bound, plus 2.5%, calculated daily based on a 365-day year and payable monthly for the duration of the loan, and market demand. Borrowings under the Coinbase Overnight Credit Facility are available on demand, open term, and collateralized by bitcoin transferred to the Lending Service Provider’s platform. Since the Lender has the right to rehypothecate the bitcoin held as collateral, the Company derecognized the bitcoin transferred. The Company has the right to receive the bitcoin back from the Lender upon repayment of the Coinbase Overnight Credit Facility, and as such recognized a receivable for bitcoin collateral measured at fair value of the bitcoin to be received upon repayment. The Company may also withdraw bitcoin if the loan becomes over-collateralized due to increases in bitcoin price.Under the Coinbase Master Loan Agreement, the Company also established the “Term Loan Facility” with a limit of $35.0 million and maximum period of one year, with an interest rate to be determined upon drawdown. Coinbase has the right to terminate loans under the Term Loan Facility if the price of bitcoin falls below $40,000. As of March 31, 2025, the Company had $25.0 million outstanding on the Coinbase Overnight Credit Facility, at a weighted average interest rate of 8.8%. The Company had $25.0 million balance outstanding on the Coinbase Overnight Credit Facility as of December 31, 2024. The Company had no balance outstanding on the Term Loan Facility as of March 31, 2025 or December 31, 2024.Luxor Purchase and Sale AgreementThe Company has the ability to enter into agreements with Luxor Technology Corporation (“Luxor”) to borrow bitcoin to be repaid at a fixed amount of bitcoin per day over fixed periods. The Company records the outstanding balance at fair value in Short-term borrowings based on the current bitcoin price, with changes in fair value recorded in Other income. 

26

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

As of March 31, 2025, the Company owed approximately 128.2 bitcoin valued at $10.5 million related to these agreements. As of December 31, 2024 the Company owed approximately 80.3 bitcoin valued at $7.3 million related to this agreement.

NOTE 19. SEGMENT REPORTING

The Company has one operating segment, Bitcoin Mining, which through operations produce bitcoin to generate revenue. The