Company: CIFRW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001819989-25-000081
Chunk: 327

Company: Cipher Mining Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 327
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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, 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 the Odessa Facility we sold excess electricity that was available under the Luminant Power Agreement back to the ERCOT market through Luminant. We sold power for proceeds of $1.4 million and $1.1 million for the three months ended June 30, 2025, and 2024, respectively. Power