Company: CIFRW
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001819989-25-000037
Chunk: 62

Company: Cipher Mining Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part II, Item 1A
Chunk 62
---
 properly reflect the change. The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on its condensed consolidated financial statements.

NOTE 3. BITCOIN

The following table presents information about the Company’s bitcoin (in thousands):For the Three Months Ended March 31,20252024Opening balance$92,651 $32,978 Bitcoin received from equity investees7,394 1,694 Bitcoin received from mining activities36,496 48,079 Bitcoin received from loan16,551 - Proceeds from sales of bitcoin(90,005)- Bitcoin loan payments (76)- Realized gains on sales of bitcoin, net(1)12,196 - Unrealized (losses) gains on bitcoin(20,178)40,556 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