Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 80

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 80
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amounts in thousands):Balance as of December 31, 2023$250 Change in fair value(250)Balance as of December 31, 2024$— Balance as of December 31, 2022$7 Change in fair value243 Balance as of December 31, 2023$250 

NOTE 19. SHORT-TERM BORROWINGS

Coinbase Master Loan AgreementThe Company has the Coinbase Master Loan Agreement, under which the Company established the Coinbase Overnight Credit Facility of $25.0 million. The Company will not incur commitment fees for unused portions of the Coinbase Overnight Credit Facility. The borrowing rate on amounts drawn against the Credit Facility is determined based on the Federal Funds Target Rate - Upper Bound, plus 2.5%, calculated daily based on a 365-day year and payable monthly for the duration of the loan, and market demand. Borrowings under the Coinbase Overnight Credit Facility are available on demand, open term, and collateralized by bitcoin transferred to the Lending Service Provider’s platform. Since the Lender has the right to rehypothecate the bitcoin held as collateral, the Company derecognized the bitcoin transferred. The Company has the right to receive the bitcoin back from the Lender upon repayment of the Coinbase Overnight Credit Facility, and as such recognized a receivable for bitcoin collateral measured at fair value of the bitcoin to be received upon repayment. The Company may also withdraw bitcoin if the loan becomes over-collateralized due to increases in bitcoin price.Under the Coinbase Master Loan Agreement, the Company also established the “Term Loan Facility” with a limit of $35.0 million and maximum period of one year, with an interest rate to be determined upon drawdown. Coinbase has the right to terminate loans under the Term Loan Facility if the price of bitcoin falls below $40,000. As of December 31, 2024, the Company had $25.0 million outstanding on the Coinbase Overnight Credit Facility, at a weighted average interest rate of 9.5%. The Company had no balance outstanding on the Coinbase Overnight Credit Facility as of December 31, 2023. The Company had no balance outstanding on the Term Loan Facility as of December 31, 2024 or 2023.Luxor Purchase and Sale AgreementOn December 13, 2024, the Company entered into an agreement with Luxor Technology Corporation (“Luxor”) to borrow 98.57 bitcoin to be repaid over 95 days at a