Company: CIFRW
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001819989-25-000005
Chunk: 65

Company: Cipher Mining Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 65
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AEP”) for $5.3 million related to construction costs to energize a wholly-owned site in LaSalle Texas (the “Reveille Facility”), as a Contributions in Aid of Construction (“CIAC”) payment.

NOTE 7. INVESTMENT IN EQUITY INVESTEES

The Company uses the equity method of accounting to account for its 49% equity interest in its partially owned mining operations Alborz LLC, Bear LLC and Chief Mountain LLC (the “Data Center LLCs”).During fiscal year 2022, the Company contributed miners and mining equipment to the Data Center LLCs. The contributed miners had a fair value that was lower than the cost paid by the Company to obtain them. As such, the Company recognized a loss at the time of the contributions, resulting in basis differences of the miners between the Company and the Data Center LLCs, which recorded the contributions of equipment from the Company at historical cost. The Company accretes these basis differences over the life of the miners and records the accretion amount for each reporting period within equity in losses of equity investees on its statements of operations. As of December 31, 2024, the Company had remaining basis differences totaling approximately $10.3 million that have not yet been accreted.Activity in the Company’s investments in equity investees during the year ended December 31, 2024, and 2023, consisted of the following (in thousands):For the Year Ended December 31,20242023Opening balance$35,258 $37,478 Cost of contributed mining equipment and other capital contributions37,122 4,435 Accretion of basis differences related to miner contributions5,344 6,683 Capital distributions- (3,808)Bitcoin received from equity investees(18,089)(317)Equity in net losses of equity investees(5,727)(9,213)Ending Balance$53,908 $35,258 

NOTE 8. INTANGIBLE ASSETS

The Company’s intangible assets consisted of the following (in thousands):December 31, 2024Gross Carrying AmountAccumulated Amortization Net Carrying AmountStrategic contracts$7,000 $(379)$6,621 Capitalized software2,653 (393)2,260 Total$9,653 $(772)$8,881 

F-23

CIPHER MINING INC.NOTES TO CONSOLIDATED