Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 249

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 5
Chunk 249
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 its intent to terminate the agreement at least six months prior to the expiration of the then current term.The Company’s management determined that the Luminant Power Agreement meets the definition of a derivative under ASC 815, Derivatives and Hedging (“ASC 815”). Accordingly, the Luminant Power Agreement is recorded at its estimated fair value each reporting period with the change in the fair value recorded in change in fair value of derivative asset in the consolidated statements of operations. See additional information regarding valuation of the Luminant Power Agreement derivative in Note 18. Fair Value Measurements.The Company may opportunistically sell electricity in the ERCOT market in exchange for cash payments, rather than utilizing the power to mine for bitcoin at the Odessa Facility to manage the Company’s operating costs. From Power sales, the Company earned approximately $1.4 million and $1.1 million for the three months ended  June 30, 2025, and 2024, respectively, and $2.4 million and $2.3 million for the six months ended June 30, 2025, and 2024, respectively, and recorded this amount within Costs and operating (expenses) income on the condensed consolidated statement of operations, with the corresponding cost of the power sold recorded in Cost of revenue.

NOTE 5. PROPERTY AND EQUIPMENT

Property and equipment, net consisted of the following (in thousands):June 30, 2025December 31, 2024Miners and mining equipment$341,475 $342,111 Leasehold improvements149,867 137,582 Land58,330 49,021 Buildings53,104 — Infrastructure101,904 28,166 Other846 606 Construction-in-progress11,929 82,017 Total cost of property and equipment717,455 639,503 Less: accumulated depreciation(243,568)(158,638)Property and equipment, net$473,887 $480,865 As of June 30, 2025, the Company had approximately $11.9 million of construction-in-progress primarily related to the additional construction at the Black Pearl Facility. For the six months ended June 30, 2025, $126.3 million of Construction-

17

CIPHER MINING INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited)

in-progress related to the build out of the Black Pearl Facility was reclassified primarily into Buildings of $53.2