Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 69

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 69
---
 to be determined based upon bids obtained in the secondary market.Black Pearl Facility LeaseThe Company and its wholly-owned subsidiary, Cipher Black Pearl LLC (“Black Pearl”), entered into an agreement with Trinity Mining Group, Inc. (“Trinity”) on December 8, 2023 to assume a lease for a 70 acre plot of land in Winkler County, Texas, for the purpose of constructing a data center, and ancillary infrastructure to construct the Black Pearl Facility. The initial term of the lease is ten years, and includes four years consecutive renewal options for ten years each.Reveille Facility LeaseThe Company and its wholly-owned subsidiary, Cipher Reveille LLC (“Reveille”), entered into an agreement with Trinity Mining Group, Inc. (“Trinity”) on December 8, 2023 to assume a lease for a 52 acre plot of land in LaSalle, Texas, for the purpose of constructing a data center, and ancillary infrastructure to construct the Reveille Facility. The initial term of the lease is ten years, and includes two consecutive renewal options for ten years each.Office leasesThe Company leases office space for its headquarters in New York, New York, and office space in Charleston, South Carolina, and Denver, Colorado.All of the Company's office leases are classified as operating leases.Additional lease informationComponents of the Company’s lease expenses are as follows (in thousands):Year Ended December 31,20242023Finance leases:Amortization of ROU assets (1)$3,043 $3,110 Interest on lease liability1,430 1,940 Total finance lease expense4,473 5,050 Operating leases:Operating lease expense2,167 1,955 Total operating lease expense2,167 1,955 Total lease expense$6,640 $7,005 (1)Amortization of finance lease ROU asset is included within depreciation expense.The Company did not incur any variable lease costs during any of the periods presented.

F-26

CIPHER MINING INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Other information related to the Company’s leases is shown below (dollar amounts in thousands): Year Ended December 31, 20242023Operating cash flows - operating lease$2,138 $1,655 Right-of-use assets obtained in exchange for finance lease liabilities$— $14,212 Right-of-use assets obtained in exchange for operating lease liabilities$6,733 $2,812