Company: CIFRW
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001819989-25-000112
Chunk: 323

Company: Cipher Mining Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part II, Item 5
Chunk 323
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 Google Warrants (as defined in Note 16. Warrants) were classified within Level 3 of the fair value hierarchy because the fair value is based on significant inputs that are unobservable in the market.  The valuation of the Google Warrants used assumptions and estimates the Company believes would be made by a market participant in making the same valuation.The Company engaged a valuation firm to determine the fair value of the Google Warrants using a Black-Scholes option-pricing model and the quoted price of Common Stock. The following table presents significant assumptions utilized in the valuations of the Google Warrants as of the date indicated:September 30, 2025Risk-free rate3.68%Dividend yield rate0.00%Volatility112.32%Contractual term (in years)6.0The following table presents changes in the estimated fair value of the Google Warrants (amounts in thousands):Balance as of December 31, 2024— Fair value of warrants as of issuance date544,450 Change in fair value(31,860)Balance as of September 30, 2025$512,590 

NOTE 19. SEGMENT REPORTING

The Company currently has one operating segment, Bitcoin Mining, which through operations produce bitcoin to generate revenue. The Chief Operating Decision Maker (“CODM”) for the Company consists of the CEO and CFO. The CODM reviews the performance of its segment primarily based on operating income when deciding on allocating resources between reinvesting in Bitcoin Mining or exploring alternative deployment of resources. Asset information is not regularly provided to the CODM for resource allocation as a large portion of assets are property and equipment that cannot be repurposed for other revenue streams.The Company’s revenues, significant expenses, operating income, and net income by segment for the nine months ended September 30, 2025 and 2024 are summarized in the following table (in thousands):

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

Three Months Ended September 30, 2025Bitcoin MiningConsolidatedRevenue - bitcoin mining$71,707 $71,707 Costs and operating (expenses) incomeCost of revenue(26,733)Depreciation and amortization(59,549)Change in fair value of power purchase agreement(9,030)Unrealized gains on fair value of bitcoin108 Realized gains on sale of bitcoin7,535 Equity in losses of equity method investees(