Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 213

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 3
Chunk 213
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 changes to the quoted forward electricity rates, as well as unobservable inputs (e.g., changes in estimated usage rates and discount rate assumptions). The following table presents the changes in the estimated fair value of the derivative asset measured using significant unobservable inputs (Level 3) for the six months ended June 30, 2025 and 2024 (amounts in thousands):Six Months Ended June 30,20252024Opening balance$85,670 $93,591 Change in fair value(8,150)29,339 Ending balance$77,520 $122,930 Level 3 liabilityThe Company’s Private Placement Warrants (as defined in Note 16. Warrants) were its only liability 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 Private Placement Warrants used assumptions and estimates the Company believes would be made by a market participant in making the same valuation. As of March 31, 2024, all Private Placement Warrants were converted to Public Warrants, and as such no Private Placement Warrants were outstanding as of June 30, 2025.The Company engaged a valuation firm to determine the fair value of the Private Placement 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 Private Placement Warrants as of the dates indicated: December 31, 2023Risk-free rate4.00%Dividend yield rate0.00%Volatility124.0%Contractual term (in years)2.7Exercise price$11.50The following table presents changes in the estimated fair value of the Private Placement Warrants (amounts in thousands):Balance as of December 31, 2024$— Change in fair value— Balance as of June 30, 2025$— Balance as of December 31, 2023$250 Change in fair value(250)Balance as of June 30, 2024$— 

NOTE 19. SEGMENT REPORTING

30

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

The Company 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