Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 231

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 8
Chunk 231
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 traced certain financial and performance data directly to the blockchain network to test the occurrence and accuracy of mining revenue as a participant in the mining pools

•We independently confirmed with the third-party mining pool operator the significant contractual terms utilized in the determination of mining revenue, total mining rewards earned, and the digital asset wallet addresses in which the rewards are deposited to test the occurrence and accuracy of mining revenue as the participant

•We performed certain analytical procedures over the completeness, occurrence and accuracy of revenue recognized by the Company

•We confirmed the year-end digital asset balances directly with the custodians of the Company’s wallets

Derivative Asset Valuation 

Description of the Matter:

As described in Notes 4 and 18 to the consolidated financial statements, the Company’s derivative asset is measured at fair value. The valuation of the derivative asset is highly subjective and requires management to make significant judgments related to market data, including interest rates, credit spreads, and other market conditions. The Company utilizes valuation models that rely on both observable and unobservable inputs.

Given the complexity and judgment involved in the valuation of the derivative asset, auditing this account required significant auditor judgment and the use of valuation specialists.

How we Addressed the Matter in our Audit:

Addressing this matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included, among others:

•With the assistance of our valuation specialists, we evaluated the appropriateness of the valuation methodologies and models used by management. This included testing the completeness, accuracy, and relevance of the market data inputs and evaluating the significant assumptions for reasonableness.

•We performed an independent revaluation of the derivative asset using our own valuation models, based on independently obtained market data.

•We evaluated the adequacy of the Company’s disclosures related to the fair value of derivative asset in the consolidated financial statements.

/s/ Marcum LLP

Marcum LLP

We have served as the Company’s auditor since 2021.

San Francisco, CA

February 25, 2025

F-3

CIPHER MINING INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except for share and per share amounts)

December 31, 2024December 31, 2023ASSETSCurrent assetsCash and cash equivalents$5,585 $86,105 Accounts receivable596 622 Receivables, related party2,090 245 Prepaid expenses and other current assets3,387 3,670 Bitcoin92,651