Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 132

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 132
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 Industry and Operations—Bitcoin miners and other necessary hardware are subject to malfunction, technological obsolescence and physical degradation.” 

The overall hashrate of the Bitcoin network is generally correlated with bitcoin price, and any significant fall in bitcoin price may force high-cost miners to cease their mining activities, which would typically result in a decrease of the network power. Because the number of blocks available to be mined is set by Bitcoin protocol irrespective of the network’s hashrate or bitcoin prices, in periods of low bitcoin prices, low-cost producers may have the opportunity to take the market share of less-efficient participants.

We believe that our controlled power costs, whether through contractually fixed price power arrangements or the use of our proprietary data center operations software, use of leading technology, and reliable operations and maintenance services will provide our mining operations with resilience against drops in bitcoin prices.

6

Our Strategy

Our strategy is to develop and operate industrial-scale data centers for bitcoin mining and HPC, as we aim to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to HPC companies. 

Commitment to growth, innovation and retaining flexibility to consider strategically adjacent opportunities to expand our business model

We recognize the value of our data centers and power infrastructure when combined with innovative and disruptive technologies, like bitcoin mining, blockchain technology and HPC. As the competition for power capacity and data center locations continues to increase, we aim to capitalize on our commitment to innovation and flexibility by expanding our business to include data center construction for industries beyond bitcoin mining, such as HPC hosting.  We believe we have been able to maintain an innovative approach by leveraging our experienced team’s know-how in power origination, data center design and construction project management, and technology. Our commitment to innovation is also demonstrated by our development of proprietary technology to manage data center operations, particularly power management and curtailment.  

Similarly, as the Bitcoin ecosystem develops and our business, including our bitcoin inventory, grows, we aim to retain flexibility in considering and engaging in various strategic initiatives that may be complimentary to our bitcoin mining operations. For example, we have enhanced our treasury management platform by engaging market counterparties with which we can hedge some or all of the value of our bitcoin inventory or the value of our expected forward production, and we could consider initiatives such as: (i) lending out bitcoin as an additional line of revenue; (ii) engaging into strategic acquisitions or joint ventures; (iii) leveraging our expected bitcoin holdings to enter into strategic partnerships in the fint