Company: CIFRW
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001819989-25-000037
Chunk: 105

Company: Cipher Mining Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part II, Item 2
Chunk 105
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,556 Bitcoin transferred to collateral, net(3,005)- Ending balance$52,024 $123,307 (1) Realized losses from sale of bitcoin was immaterial in all periods presented.The Company held approximately 630 and 994 bitcoin at March 31, 2025, and December 31, 2024, respectively. The associated fair value and cost basis of bitcoin held was $52.0 million, and $59.2 million, respectively, at March 31, 2025, and $92.7 million, and $79.8 million, respectively at December 31, 2024. Fair value of bitcoin is estimated using the closing price at 23:59:59 UTC in the Company’s principal market, which is a Level 1 input (i.e., an observable input such as a quoted price in an active market for an identical asset). The Company accounts for bitcoin on a first-in-first-out (“FIFO”) basis.As of March 31, 2025, 394 bitcoin with a fair value of $32.5 million were pledged as collateral related to the Coinbase Overnight Credit Facility. As of December 31, 2024, 345 bitcoin with a fair value of $32.2 million were pledged as collateral related to the Coinbase Overnight Credit Facility. Restrictions on this bitcoin pledged as collateral will lapse upon repayment of the outstanding balance drawn on this facility. The collateral pledged related to the Coinbase Overnight Credit Facility can be rehypothecated and therefore is derecognized from the Company’s ending bitcoin balance, and recorded in Receivable for bitcoin collateral on the Company’s consolidated balance sheet. Any difference in cost basis of the bitcoin transferred is recorded in Realized gains on sale of bitcoin on the Company’s consolidated statement of operations.Additionally, the Company may pledge bitcoin as collateral related to bitcoin trading strategies. As of March 31, 2025, we had 15 bitcoin with a fair value of $1.2 million pledged relating to bitcoin trading strategies. Restrictions on this collateral will lapse in June 2025. As of December 31, 2024 the Company had no bitcoin pledged as part of trading strategies.

NOTE 4. DERIVATIVE ASSET

Luminant Power AgreementOn June 23, 2021, the Company entered into a power purchase agreement with Luminant, which was subsequently amended and restated on July 9, 2021, and further amended on February 28, 2022