Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 279

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 5
Chunk 279
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 prices for similar type assets, is classified in Level 3 of the fair value hierarchy. Specifically, the discounted cash flow estimation models contain quoted spot and forward prices for electricity, as well as estimated usage rates consistent with the terms of the Luminant Power Agreement, the initial term of which is five years.

Power sales

At our Odessa Facility, we sell excess electricity that was available under the Luminant Power Agreement, but not needed in our mining operations, back to the ERCOT market through Luminant. We sold power for proceeds of $2.4 million and $2.3 million for the six months ended June 30, 2025, and 2024, respectively.  Power sales fluctuate each period based on power and bitcoin prices, which are volatile.

Equity in income (losses) of equity investees

Equity in losses of equity investees totaled $7.0 million for the six months ended June 30, 2025 compared to income of $0.2 million for the six months ended June 30, 2024. Equity in losses of equity investees consists of our 49% 

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share in the earnings (losses) generated by our three partially-owned mining sites, and the accretion of the basis differences in our investments in the equity investees that resulted from contributions of miners during the year ended December 31, 2022. We are accreting these basis differences over the five-year useful life of the miners. For the six months ended June 30, 2025, we recognized roughly $4 million as our 49% share of a one-time impairment charge on the miners of Alborz LLC, net of accretion.

Unrealized (losses) gains on fair value of bitcoin

Unrealized losses on fair value of bitcoin totaled $3.0 million for the six months ended June 30, 2025, compared to Unrealized gains on fair value of bitcoin of $19.4 million for the six months ended June 30, 2024. Unrealized (losses) gains on fair value of bitcoin is driven by the cost of bitcoin mined compared to the price of bitcoin at the end of the period.

Realized gains on sale of bitcoin

Realized gains on sale of bitcoin totaled $8.6 million for the six months ended June 30, 2025 compared to $4.9 million in the prior year period. In both periods, this is driven by selling