Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 118

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 1A
Chunk 118
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 average bitcoin price in the current year, partially offset by a decrease in the amount of bitcoin mined as a result of the bitcoin halving in April 2024.

Cost of revenue

Cost of revenue for the six months ended June 30, 2025 was $30.2 million, compared with $29.1 million for the six months ended June 30, 2024, and consisted primarily of power costs at the Odessa Facility. The increase is primarily due to power draw at the Black Pearl and Barber Lake Facilities .

Compensation and benefits

Compensation and benefits for the six months ended June 30, 2025 was $30.0 million, compared to $29.3 million for the six months ended June 30, 2024. The increase was primarily due to an increase in headcount year-over-year.

General and administrative

General and administrative expenses for the six months ended June 30, 2025 was $18.0 million, an increase of $3.6 million compared to $14.4 million for the six months ended June 30, 2024. The increase was primarily driven by an increase in legal fees related to strategic initiatives.

Depreciation and amortization

Depreciation and amortization for the six months ended June 30, 2025 was $87.6 million, an increase of $50.1 million compared to Depreciation and amortization of $37.5 million for the six months ended June 30, 2024. The increase was primarily due to increased miners, and mining equipment at the Odessa Facility as a result of the Odessa fleet upgrade in the fourth quarter of 2024, as well as the change in the estimated useful life of our miners from five years to three years as of June 1, 2024.

Change in fair value of derivative asset

Change in fair value of derivative asset was a $8.2 million decrease for the six months ended June 30, 2025 and was driven by the fair value of the Luminant Power Agreement. The estimated fair value of our derivative asset was derived from Level 2 and Level 3 inputs, and, due to a lack of quoted prices for similar type assets, is classified in Level 3 of the fair value hierarchy. Specifically, the discounted cash flow estimation models contain quoted spot and forward prices for electricity, as well as estimated usage rates consistent with the terms of the Luminant Power Agreement, the initial term of which is five years