Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 63

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 63
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31, 2024December 31, 2023Miners and mining equipment$342,111 $163,523 Leasehold improvements137,582 138,883 Land49,021 — Infrastructure28,166 — Other606 440 Construction-in-progress82,017 49 Total cost of property and equipment639,503 302,895 Less: accumulated depreciation(158,638)(59,080)Property and equipment, net$480,865 $243,815 As of December 31, 2024, the Company has added approximately $82.0 million of construction-in-progress related to the build-out of the Black Pearl Facility. Depreciation expense was approximately $101.8 million and $59.0 million, respectively, for the years ended December 31, 2024 and 2023, respectively, and included approximately $1.9 million and $1.7 million for the years ended December 31, 2024 and 2023, of accretion expense related to the Company’s asset retirement obligation for the Odessa Facility.In June 2024, the Company entered into agreements with Bitmain Technologies Delaware Limited (“Bitmain”) and Canaan Creative Global Pte. Ltd. (“Canaan”) to purchase the new miners, which were delivered and deployed in the fourth quarter of 2024. As more efficient machines were available earlier than anticipated, this prompted a shift in the Company's planned use of the existing miners. The Company used these new miners to replace less efficient machines at the Odessa Facility instead of deploying at the Black Pearl Facility. The Company deemed this event a trigger to reevaluate the estimated useful lives of the miners, and the Company reduced the estimated useful life of miners from five years to three years. The Company changed this accounting policy effective June 1, 2024 and accounted for it prospectively. This change in estimate resulted in a $29.1 million increase in Depreciation and amortization expense, and respective reduction of Operating (loss) income, and Net (loss) income for the year ended December 31, 2024, respectively, and a $0.09 increase in Net loss per share for the year ended December 31, 2024.As part of the asset acquisition to acquire a site in Colorado City, Texas, (the “Barber Lake Site”) on September 23, 2024, the Company acquired Property and equipment