Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 220

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 3
Chunk 220
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, 2024 and was generated from bitcoin mining operations at the Odessa and Black Pearl Facilities. The increase year over year was primarily driven by higher bitcoin prices in the current quarter compared to the prior year quarter, partially offset by less bitcoin mined as a result of the halving in April of 2024, which reduced the bitcoin received for mining a block from 6.25 bitcoin to 3.125 bitcoin.

Cost of revenue

Cost of revenue for the three months ended June 30, 2025 was $15.3 million, compared with $14.3 million for the three months ended June 30, 2024, and consisted primarily of power costs at the Odessa Facility under the Luminant Power Agreement. The increase in the three months ended June 30, 2025 is driven primarily by additional power costs from the energization of the Black Pearl and Barber Lake facilities in the second quarter of 2025.

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Compensation and benefits

Compensation and benefits for the three months ended June 30, 2025 was $15.7 million, a decrease of $0.6 million compared to $16.3 million for the three months ended June 30, 2024. The decrease was primarily due to the expiration of the expense on certain Share-based compensation awards in the first quarter of 2025.

General and administrative

General and administrative expenses increased by $0.7 million to $9.1 million during the three months ended June 30, 2025 from $8.4 million for the three months ended June 30, 2024. The increase was primarily driven by an increase in legal fees related to strategic initiatives.

Depreciation and amortization

Depreciation for the three months ended June 30, 2025 was $44.1 million, an increase of $23.8 million compared to Depreciation and amortization of $20.3 million for the three months ended June 30, 2024. The increase was primarily due to additional depreciation expense on miners acquired as part of the Odessa fleet upgrade.

Change in fair value of derivative asset

Change in fair value of derivative asset was a $15.5 million loss for the three months ended June 30, 2025 and was driven by the fair value of the Luminant Power Agreement. The estimated fair value of our derivative asset was derived from Level 2 and Level 3 inputs, and, due to a lack of quoted prices for similar type assets