Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 131

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 131
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With respect to bitcoin mining, we believe that scale can be a key factor in driving cost and margin improvements in the bitcoin mining business, as well as providing a degree of protection against the price volatility associated with bitcoin. As of January 31, 2025, we have deployed approximately 327 MW of electrical capacity across our four data centers, with a corresponding hashrate of approximately 15.7 EH/s, of which we owned approximately 13.5 EH/s. As further discussed in “—Our Strategy”, we plan to deploy an additional approximately 150 MW for a total of approximately 477 MW of electrical capacity by the end of 2025, and a corresponding hashrate of at least approximately 25.2 EH/s, of which we expect to own approximately 23.0 EH/s, with the remainder being owned by WindHQ, our JV partner.

In 2025, we plan to expand deployment of electrical capacity at our existing data centers, including our Black Pearl Facility that is under construction, at our other pipeline of sites, and potentially also at new, yet to be secured, sites. We plan to use cash flows that we expect to generate from our operations and potentially additional sources of financing, or joint venture or other arrangements, to fund the required capital expenditures associated with any potential expansion.

Cost leadership with reliable electricity supply and resilient business model with downside protection against drops in bitcoin prices

Our current portfolio of power for our data centers has an average cost that we believe to be among the lowest in the industry. For further details on those arrangements, see “—Business Agreements—Luminant Power Agreement.” We have access, until at least July 2027, to competitive electricity costs, with a cost of electricity of approximately 2.7 c/kWh. We believe that we operate one of the most efficient mining rig fleets in the global market by running our mining equipment with proprietary software applications that help us maximize computing power output per MW while attempting to minimize unintentional downtime and repair costs. Additionally, our strategy involves curtailing our mining operations, meaning we turn the miners on and off, for a variety of contractual, economic, weather related, business or other reasons. At our sites that do not have contractually fixed price power, for example, we operate our proprietary software to curtail during times when power prices are high; in this way we significantly reduce the prices we pay for power at these data centers. For further details, see “Risk Factors—Risks Related to Our Business,