Company: CIFRW
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001819989-25-000037
Chunk: 100

Company: Cipher Mining Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part II, Item 2
Chunk 100
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. The Company’s portfolio as of March 31, 2025 also includes four wholly-owned sites which have not commenced operations, and options to acquire three additional wholly-owned sites.Risks and uncertaintiesLiquidity and capital resourcesThe Company has historically experienced net losses and negative cash flows from operations; however, proceeds from sales of bitcoin are categorized as cash flows from investing activities to the extent bitcoin is sold after seven days of receipt. As of March 31, 2025, the Company had approximate balances of cash and cash equivalents of $23.2 million, working capital of $15.8 million, total stockholders’ equity of $734.8 million and an accumulated deficit of $220.4 million. The Company uses a combination of proceeds from sales of bitcoin earned by or received from its bitcoin mining data centers, short-term financing arrangements, and strategic sales of shares through “at-the-market” offerings to support its operating expenses and capital expenditures.The Company monitors its balance sheet on an ongoing basis to determine the proper mix of bitcoin retention and bitcoin sales to support its cash requirements, ongoing operations, and capital expenditures. Bitcoin is classified as a current asset on the Company’s balance sheets due to its intent and ability to sell bitcoin to support operations when needed. Approximately $47.2 million of cash was used for operating activities during the three months ended March 31, 2025.During the three months ended March 31, 2025, the Company sold bitcoin for proceeds of approximately $90.0 million, paid approximately $75.1 million for deposits on equipment primarily related to new miner purchases, and paid approximately $24.6 million for property and equipment primarily related to the build-out of the Black Pearl Facility. The Company has a master loan agreement with Coinbase Credit, Inc., as Lender, and Coinbase, Inc., as Lending Service Provider (the “Coinbase Master Loan Agreement”). Pursuant to the master loan agreement, the Company has a secured line of credit up to $25.0 million (the “Coinbase Overnight Credit Facility”), and a term loan facility with Coinbase with a limit of $35.0 million and maximum period of one year (the “Term Loan Facility”). As described in more detail in Note 18. Short-term borrowings, the borrowings are collateralized by bitcoin transferred to the Lending Service Provider’s platform.Management believes that the Company’s existing financial resources, combined with projected cash and bitcoin inflows from its data centers, its ability to sell bitcoin received or earned, and