# EDGAR Filing Document

**Accession Number:** 0001819989
**File Stem:** 0001819989-25-000081
**Filing Date:** 2025-8
**Character Count:** 203786
**Document Hash:** c7b4ae5793108d69de1d34231cbaba64
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001819989-25-000081.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001819989-25-000081

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 102

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cipher Mining Inc.
- **CENTRAL INDEX KEY:** 0001819989
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **EIN:** 851614529
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39625
- **FILM NUMBER:** 251191964

**BUSINESS ADDRESS:**
- **STREET 1:** 1 VANDERBILT AVENUE
- **STREET 2:** FLOOR 54
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10017
- **BUSINESS PHONE:** 332-262-2300

**MAIL ADDRESS:**
- **STREET 1:** 1 VANDERBILT AVENUE
- **STREET 2:** FLOOR 54
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10017

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GOOD WORKS ACQUISITION CORP.
- **DATE OF NAME CHANGE:** 20200803

?xml version='1.0' encoding='ASCII'? cifr-20250630

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

________________________________________________________________________________________________________________

**FORM 10-Q**

_______________________________________________________________________________________________________________

**(Mark One)**

⌧ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**OR**

□ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ________to ________.**

**Commission File Number: 001-39625**

________________________________________________________________________________________________________________

**Cipher Mining Inc.**

**(Exact Name of Registrant as Specified in its Charter)**

________________________________________________________________________________________________________________

---

| | |
|:---|:---|
| **Delaware** | **85-1614529** |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(I.R.S. Employer**<br>**Identification No.)** |
| **1 Vanderbilt Avenue, Floor 54,**<br>**New York, New York** | **10017** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (332) 262-2300**

**Former name, former address and former fiscal year, if changed since last report: N/A**

________________________________________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbol(s)** | **Name of each exchange on which registered** |
| **Common Stock, par value $0.001 per share** | **CIFR** | **The Nasdaq Stock Market LLC** |
| **Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per whole share** | **CIFRW** | **The Nasdaq Stock Market LLC** |

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ⌧ | Accelerated filer | □ |
| Non-accelerated filer | □ | Smaller reporting company | □ |
| | | Emerging growth company | □ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes □ No ⌧

As of August 6, 2025, the registrant had 393,282,654 shares of Common Stock, $0.001 par value per share, outstanding.

------

**Table of Contents**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **[PART I.](#i69de4c63f600437e818a130c8b46d5c7_31)** | <u>[FINANCIAL INFORMATION](#i69de4c63f600437e818a130c8b46d5c7_31)</u> | [4](#i69de4c63f600437e818a130c8b46d5c7_31) |
| [Item 1.](#i69de4c63f600437e818a130c8b46d5c7_196) | <u>[Financial Statements (Unaudited)](#i69de4c63f600437e818a130c8b46d5c7_40)</u> | [4](#i69de4c63f600437e818a130c8b46d5c7_40) |
|  | <u>[Condensed Consolidated Balance Sheets](#i69de4c63f600437e818a130c8b46d5c7_49)</u> | [5](#i69de4c63f600437e818a130c8b46d5c7_49) |
|  | <u>[Condensed Consolidated Statements of Operations](#i69de4c63f600437e818a130c8b46d5c7_52)</u> | [7](#i69de4c63f600437e818a130c8b46d5c7_52) |
|  | <u>[Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit)](#i69de4c63f600437e818a130c8b46d5c7_55)</u> | [8](#i69de4c63f600437e818a130c8b46d5c7_55) |
|  | <u>[Condensed Consolidated Statements of Cash Flows](#i69de4c63f600437e818a130c8b46d5c7_61)</u> | [10](#i69de4c63f600437e818a130c8b46d5c7_61) |
|  | <u>[Notes to Unaudited Condensed Consolidated Financial Statements](#i69de4c63f600437e818a130c8b46d5c7_64)</u> | [13](#i69de4c63f600437e818a130c8b46d5c7_64) |
| [Item 2.](#i69de4c63f600437e818a130c8b46d5c7_250) | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i69de4c63f600437e818a130c8b46d5c7_145)</u> | [35](#i69de4c63f600437e818a130c8b46d5c7_145) |
| [Item 3.](#i69de4c63f600437e818a130c8b46d5c7_34) | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i69de4c63f600437e818a130c8b46d5c7_190)</u> | [44](#i69de4c63f600437e818a130c8b46d5c7_190) |
| [Item 4.](#i69de4c63f600437e818a130c8b46d5c7_265) | <u>[Controls and Procedures](#i69de4c63f600437e818a130c8b46d5c7_193)</u> | [44](#i69de4c63f600437e818a130c8b46d5c7_193) |
| **[PART II.](#i69de4c63f600437e818a130c8b46d5c7_43)** | <u>[OTHER INFORMATION](#i69de4c63f600437e818a130c8b46d5c7_232)</u> | [46](#i69de4c63f600437e818a130c8b46d5c7_232) |
| [Item 1.](#i69de4c63f600437e818a130c8b46d5c7_46) | <u>[Legal Proceedings](#i69de4c63f600437e818a130c8b46d5c7_235)</u> | [46](#i69de4c63f600437e818a130c8b46d5c7_235) |
| [Item 1A.](#i69de4c63f600437e818a130c8b46d5c7_49) | <u>[Risk Factors](#i69de4c63f600437e818a130c8b46d5c7_238)</u> | [46](#i69de4c63f600437e818a130c8b46d5c7_238) |
| [Item 2.](#i69de4c63f600437e818a130c8b46d5c7_52) | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i69de4c63f600437e818a130c8b46d5c7_241)</u> | [47](#i69de4c63f600437e818a130c8b46d5c7_241) |
| [Item 3.](#i69de4c63f600437e818a130c8b46d5c7_55) | <u>[Defaults Upon Senior Securities](#i69de4c63f600437e818a130c8b46d5c7_244)</u> | [48](#i69de4c63f600437e818a130c8b46d5c7_244) |
| [Item 4.](#i69de4c63f600437e818a130c8b46d5c7_61) | <u>[Mine Safety Disclosures](#i69de4c63f600437e818a130c8b46d5c7_247)</u> | [48](#i69de4c63f600437e818a130c8b46d5c7_247) |
| [Item 5.](#i69de4c63f600437e818a130c8b46d5c7_64) | <u>[Other Information](#i69de4c63f600437e818a130c8b46d5c7_250)</u> | [48](#i69de4c63f600437e818a130c8b46d5c7_250) |
| [Item 6.](#i69de4c63f600437e818a130c8b46d5c7_67) | <u>[Exhibits](#i69de4c63f600437e818a130c8b46d5c7_262)</u> | [49](#i69de4c63f600437e818a130c8b46d5c7_262) |
| <u>[Signatures](#i69de4c63f600437e818a130c8b46d5c7_265)</u> | <u>[Signatures](#i69de4c63f600437e818a130c8b46d5c7_265)</u> | [50](#i69de4c63f600437e818a130c8b46d5c7_265) |

---

i

------

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q (the "Quarterly Report") contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this Quarterly Report, other than statements of historical fact, including, without limitation, statements about our beliefs and expectations regarding our future results of operations and financial position, planned business model and strategy, our bitcoin mining and high-performance compute ("HPC") data center development, timing and likelihood of success, capacity, functionality and timing of operation of data centers, expectations regarding the operation of data centers, potential strategic initiatives, such as joint ventures and partnerships, and management plans and objectives are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "seeks," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions, although not all forward-looking statements use these words or expressions. The forward-looking statements in this Quarterly Report are only predictions and are largely based on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We operate in a rapidly evolving industry and have an evolving business model and strategy, which includes our increasing focus on diversification into constructing and operating data centers for HPC companies, as well as bitcoin mining.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we fail to grow our hashrate, we may be unable to compete, and our results of operations could suffer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The further development and acceptance of digital asset networks and other digital assets, which represent a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of digital asset systems may adversely affect an investment in us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may face several risks due to disruptions in the digital asset markets, including but not limited to, financing risk, risk of increased losses or impairments in our investments or other assets, risks of legal proceedings and government investigations, and risks from price declines or price volatility of digital assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any unfavorable global economic, business or political conditions, such as geopolitical tensions, military conflicts, acts of terrorism, natural disasters, pandemics, trade restrictions, tariffs, or similar events could adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bitcoin mining activities are energy-intensive, which may restrict the geographic locations of miners and have a negative environmental impact. Government regulators may potentially restrict the ability of electricity suppliers to provide electricity to mining operations, such as ours, increase taxes on the purchase of electricity used to mine bitcoin, or even fully or partially ban mining operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have concentrated our operations and, thus, are particularly exposed to the performance of the Odessa Facility and changes in the regulatory environment, market conditions and natural disasters in Texas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We depend on third parties, including electric grid operators, electric utility providers and manufacturers of certain critical and specialized equipment, and rely on components and raw materials that may be subject to price fluctuations or shortages, including application-specific integrated circuit ("ASIC") chips that have been subject to periods of significant shortage and high innovation pace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be affected by price fluctuations in the wholesale and retail power markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are vulnerable to severe weather conditions and natural disasters, including severe heat, winter weather events, earthquakes, fires, floods, hurricanes, as well as power outages and other industrial incidents or mechanical failures, which could severely disrupt the normal operation of our business and adversely affect our results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bitcoin miners and other necessary hardware are subject to malfunction, technological obsolescence and physical degradation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we or our third-party providers fail to protect confidential information and/or experience cybersecurity incidents, such as cyber-attacks, data breaches, hacking attacks or malware, there may be disruptions to our operations, triggering significant liability for us, which could harm our operating results and financial condition, and damage our reputation or otherwise materially harm our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The value of bitcoin has historically been subject to wide swings, and our operating results may be adversely affected by our hedging activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There is a potential that, in the event of a bankruptcy filing by a custodian, bitcoin held in custody could be determined to be property of a bankruptcy estate and we could be considered a general unsecured creditor thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Regulatory changes or actions may restrict the use of bitcoin in a manner that adversely affects our business, prospects or operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our sources of revenue are dependent on bitcoin and the Bitcoin ecosystem, which can be highly volatile.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any potential use of emerging technologies like artificial intelligence, machine learning and generative artificial intelligence could lead to unintended consequences and result in reputational harm and litigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have identified a material weakness in our internal control over financial reporting which, if not timely remediated, may adversely affect the accuracy and reliability of our future financial statements, and our reputation, business and the price of our common stock, as well as may lead to a loss of investor confidence in us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The important factors discussed in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission (the "SEC") on February 25, 2025 (the "2024 Form 10-K"), and our other reports filed with the SEC.

The forward-looking statements in this Quarterly Report are based upon information available to us as of the date of this Quarterly Report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this Quarterly Report and the documents that we reference in this Quarterly Report and have filed as exhibits to this Quarterly Report with the understanding that our actual future results, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this Quarterly Report. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this Quarterly Report, whether as a result of any new information, future events or otherwise.

------

**WHERE YOU CAN FIND MORE INFORMATION**

Our corporate website address is https://www.ciphermining.com ("Corporate Website"). The contents of, or information accessible through, our Corporate Website are not part of this Quarterly Report.

The Company maintains a dedicated investor website at https://investors.ciphermining.com/investors ("Investors' Website") which is similarly not part of this Quarterly Report. We make our filings with the SEC, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and all amendments to those reports, available free of charge on our Investors' Website as soon as reasonably practicable after we file such reports with, or furnish such reports to, the SEC.

We may use our Investors' Website as a distribution channel of material information about the Company including through press releases, investor presentations, sustainability reports, and notices of upcoming events. We intend to utilize our Investors' Website as a channel of distribution to reach public investors and as a means of disclosing material non-public information for complying with disclosure obligations under Regulation FD.

Any reference to our Corporate Website or Investors' Website addresses do not constitute incorporation by reference of the information contained on or available through those websites, and you should not consider such information to be a part of this Quarterly Report or any other filings we make with the SEC.

------

**PART I - FINANCIAL INFORMATION**

**Item 1. Financial Statements**

------

**CIPHER MINING INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

(in thousands, except for share and per share amounts)

(unaudited)

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| **ASSETS** | | |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $62704 | $5585 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 1575 | 596 |
| &nbsp;&nbsp;&nbsp;Receivables, related party | 249 | 2090 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 7417 | 3387 |
| &nbsp;&nbsp;&nbsp;Bitcoin | 112089 | 92651 |
| &nbsp;&nbsp;&nbsp;Receivable for bitcoin collateral | - | 32248 |
| &nbsp;&nbsp;&nbsp;Derivative asset | 35629 | 31648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 219663 | 168205 |
| Restricted cash | 14392 | 14392 |
| Property and equipment, net | 473887 | 480865 |
| Deposits on equipment | 183028 | 38872 |
| Intangible assets, net | 9229 | 8881 |
| Investment in equity investees | 45901 | 53908 |
| Derivative asset | 41891 | 54022 |
| Operating lease right-of-use asset | 12288 | 12561 |
| Security deposits | 13794 | 19782 |
| Other noncurrent assets | 4686 | 3958 |
| &nbsp;&nbsp;&nbsp;**Total assets** | $**1018759** | $**855446** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $14871 | $22699 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 30180 | 69824 |
| &nbsp;&nbsp;&nbsp;Finance lease liability, current portion | 4011 | 3798 |
| &nbsp;&nbsp;&nbsp;Operating lease liability, current portion | 3444 | 3127 |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | - | 32330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 52506 | 131778 |
| Long-term borrowings, net | 167113 | - |
| Asset retirement obligations | 32110 | 20282 |
| Finance lease liability | 5270 | 7331 |
| Operating lease liability | 9450 | 9833 |
| Deferred tax liability | 3406 | 4269 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 269855 | 173493 |
| Commitments and contingencies (*Note 13*) |  |  |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value; 10,000,000 shares authorized, none issued and outstanding as of June 30, 2025, and December 31, 2024 | - | - |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value, 500,000,000 shares authorized, 388,123,588 and 361,432,449 shares issued as of June 30, 2025 and December 31, 2024, respectively, and 386,758,546 and 350,783,817 shares outstanding as of June 30, 2025, and December 31, 2024, respectively | 388 | 361 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 1014686 | 863015 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (266168) | (181412) |
| &nbsp;&nbsp;&nbsp;Treasury stock, at par, 1,365,042 and 10,648,632 shares at June 30, 2025 and December 31, 2024, respectively | (2) | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 748904 | 681953 |
| &nbsp;&nbsp;&nbsp;**Total liabilities and stockholders' equity** | $**1018759** | $**855446** |

---

------

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

------

**CIPHER MINING INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

(in thousands, except for share and per share amounts)

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue - bitcoin mining | $43565 | $36808 | $92524 | $84945 |
| Costs and operating (expenses) income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenue | (15330) | (14281) | (30224) | (29101) |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | (15659) | (16285) | (29962) | (29321) |
| &nbsp;&nbsp;&nbsp;General and administrative | (9078) | (8365) | (18029) | (14442) |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | (44086) | (20251) | (87553) | (37495) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative asset | (15480) | 21980 | (8150) | 29339 |
| &nbsp;&nbsp;&nbsp;Power sales | 1376 | 1109 | 2367 | 2282 |
| &nbsp;&nbsp;&nbsp;Equity in (losses) income of equity investees | (1701) | (577) | (6993) | 161 |
| &nbsp;&nbsp;&nbsp;Unrealized gains (losses) on fair value of bitcoin | 17143 | (21178) | (3035) | 19378 |
| &nbsp;&nbsp;&nbsp;Realized (losses) gains on sale of bitcoin | (3639) | 4869 | 8557 | 4869 |
| &nbsp;&nbsp;&nbsp;Other operating losses | (2354) | - | (2833) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and operating expenses | (88808) | (52979) | (175855) | (54330) |
| Operating (loss) income | (45243) | (16171) | (83331) | 30615 |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 296 | 1053 | 486 | 1839 |
| &nbsp;&nbsp;&nbsp;Interest expense | (1137) | (372) | (1914) | (772) |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | - | - | - | 250 |
| &nbsp;&nbsp;&nbsp;Other income (expense) | 1220 | 727 | 1064 | (1231) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | 379 | 1408 | (364) | 86 |
| (Loss) income before taxes | (44864) | (14763) | (83695) | 30701 |
| Current income tax expense | (1145) | (335) | (1924) | (721) |
| Deferred income tax benefit (expense) | 228 | (193) | 863 | (5371) |
| &nbsp;&nbsp;Total income tax expense | (917) | (528) | (1061) | (6092) |
| Net (loss) income | $(45781) | $(15291) | $(84756) | $24609 |
| (Loss) income per share - basic and diluted | $(0.12) | $(0.05) | $(0.23) | $0.08 |
| Weighted average shares outstanding - basic | 375052248 | 314353742 | 367823593 | 305497621 |
| Weighted average shares outstanding - diluted | 375052248 | 314353742 | 367823593 | 316652300 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

------

**CIPHER MINING INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)**

(in thousands, except for share amounts)

(unaudited)

**Three Months Ended June 30, 2025**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in Capital** | **Accumulated Deficit**  | **Treasury Stock**  | **Treasury Stock**  | **Total<br>Stockholders' Equity** |
| | **Shares** | **Amount** | **Additional<br>Paid-in Capital** | **Accumulated Deficit**  | **Shares**  | **Amount**  | **Total<br>Stockholders' Equity** |
| **Balance as of March 31, 2025** | **371313598** | $**371** | $**954812** | $**(220387)** | **(455899)** | $**(1)** | $**734795** |
| &nbsp;&nbsp;Issuance of common shares, net of offering costs - At-the-market offering | 14185254 | 14 | 51472 | - | - | - | 51486 |
| &nbsp;&nbsp;Delivery of common stock underlying restricted stock units, net of shares settled for tax withholding settlement | 2624736 | 3 | (3175) | - | (909143) | (1) | (3173) |
| &nbsp;&nbsp;Share-based compensation | - | - | 11577 | - | - | - | 11577 |
| &nbsp;&nbsp;Net loss | - | - | - | (45781) | - | - | (45781) |
| **Balance as of June 30, 2025** | **388123588** | $**388** | $**1014686** | $**(266168)** | **(1365042)** | $**(2)** | $**748904** |

---

**Three Months Ended June 30, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock**  | **Common Stock**  | **Additional**<br>**Paid-in Capital**  | **Accumulated Deficit**  | **Treasury Stock**  | **Treasury Stock**  | **Total<br>Stockholders' Equity** |
| | **Shares**  | **Amount**  | **Additional**<br>**Paid-in Capital**  | **Accumulated Deficit**  | **Shares**  | **Amount**  | **Total<br>Stockholders' Equity** |
| **Balance as of March 31, 2024** | **312649102** | $**313** | $**697494** | $**(96877)** | **(6105772)** | $**(6)** | $**600924** |
| &nbsp;&nbsp;Issuance of common shares, net of offering costs - At-the-market offering | 20626145 | 21 | 95836 | - | - | - | 95857 |
| &nbsp;&nbsp;Delivery of common stock underlying restricted stock units, net of shares settled for tax withholding settlement | 2282625 | 2 | (4057) | - | (835674) | (1) | (4056) |
| &nbsp;&nbsp;Share-based compensation | - | - | 13337 | - | - | - | 13337 |
| &nbsp;&nbsp;Net loss | **-** | - | - | (15291) | **-** | - | (15291) |
| **Balance as of June 30, 2024** | **335557872** | $**336** | $**802610** | $**(112168)** | **(6941446)** | $**(7)** | $**690771** |

---

------

**CIPHER MINING INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)**

(in thousands, except for share amounts)

(unaudited)

**Six Months Ended June 30, 2025**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-in Capital** | **Accumulated Deficit**  | **Treasury Stock**  | **Treasury Stock**  | **Total<br>Stockholders' Equity** |
| | **Shares** | **Amount** | **Additional<br>Paid-in Capital** | **Accumulated Deficit**  | **Shares**  | **Amount**  | **Total<br>Stockholders' Equity** |
| **Balance as of December 31, 2024** | **361432449** | $**361** | $**863015** | $**(181412)** | **(10648632)** | $**(11)** | $**681953** |
| Issuance of common shares, net of offering costs - At-the-market offering | 23334701 | 23 | 85642 | - | **-** | - | 85665 |
| Treasury stock reissued for PIPE Investment |  | - | 49990 | - | 10438413 | 10 | 50000 |
| Delivery of common stock underlying restricted stock units, net of shares settled for tax withholding settlement | 3356438 | 4 | (4319) | - | (1154823) | (1) | (4316) |
| Share-based compensation | - | - | 20358 | - | **-** | - | 20358 |
| Net loss | **-** | - | - | (84756) | **-** | - | (84756) |
| **Balance as of June 30, 2025** | **388123588** | $**388** | $**1014686** | $**(266168)** | **(1365042)** | $**(2)** | $**748904** |

---

**Six Months Ended June 30, 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Common Stock**  | **Common Stock**  | **Additional**<br>**Paid-in Capital**  | **Accumulated Deficit**  | **Treasury Stock**  | **Treasury Stock**  | **Total<br>Stockholders' Equity** |
| | **Shares**  | **Amount**  | **Additional**<br>**Paid-in Capital**  | **Accumulated Deficit**  | **Shares**  | **Amount**  | **Total<br>Stockholders' Equity** |
| **Balance as of December 31, 2023** | **296276536** | $**296** | $**627822** | $**(136777)** | **(5318674)** | $**(5)** | $**491336** |
| Issuance of common shares, net of offering costs - At-the-market offering | 34872380 | 35 | 160369 | - | - | - | 160404 |
| &nbsp;&nbsp;Delivery of common stock underlying restricted stock units, net of shares settled for tax withholding settlement | 4408956 | 5 | (7235) | - | (1622772) | (2) | (7232) |
| &nbsp;&nbsp;Share-based compensation | - | - | 21654 | - | - | - | 21654 |
| &nbsp;&nbsp;Net income | - | - | - | 24609 | - | - | 24609 |
| **Balance as of June 30, 2024** | **335557872** | $**336** | $**802610** | $**(112168)** | **(6941446)** | $**(7)** | $**690771** |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

------

**CIPHER MINING INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

(in thousands)

(unaudited)

------

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| Net (loss) income | $(84756) | $24609 |
| Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation | 87166 | 37192 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 388 | 303 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of operating right-of-use asset | 765 | 565 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation | 19625 | 21654 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity in losses (gains) of equity investees | 6993 | (161) |
| &nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of assets | 633 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-cash lease expense | 570 | 762 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating activities | - | (1839) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | (863) | 5371 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash consideration received for services | (91544) | (85281) |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of derivative asset | 8150 | (29339) |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of warrant liability | - | (250) |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of bitcoin collateral | (5731) | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of bitcoin loan | 782 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss (gains) on fair value of bitcoin | 3035 | (19378) |
| &nbsp;&nbsp;&nbsp;&nbsp; Realized gains on sale of bitcoin | (8557) | (4869) |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (979) | 336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables, related party | 1841 | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 4791 | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security deposits | 5988 | 1609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current assets | (728) | (203) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (11440) | (47) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, related party | - | (2745) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | (39047) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease liabilities | (537) | (417) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (103455) | (51988) |
| **Cash flows from investing activities** |  |  |
| Proceeds from sale of bitcoin | 121352 | 10334 |
| Deposits on equipment | (162378) | (35748) |
| Purchases of property and equipment | (55867) | (15766) |
| Purchases and development of software | (735) | (698) |
| Investment in equity investees | (12842) | (20435) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in provided by investing activities | (110470) | (62313) |
| **Cash flows from financing activities** |  |  |
| Proceeds from treasury stock reissued for PIPE investment | 50000 | - |
| Proceeds from the issuance of common stock | 86798 | 163276 |
| Offering costs paid for the issuance of common stock  | (1133) | (2868) |
| Proceeds from issuance of convertible notes, net of issuance costs | 167113 | - |
| Repurchase of common shares to pay employee withholding taxes | (4317) | (7237) |
| Principal payments on loan | (25000) | - |
| Principal payments on financing lease | (2417) | (2418) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 271044 | 150753 |
| Net increase in cash, cash equivalents, and restricted cash | 57119 | 36452 |
| Cash, cash equivalents, and restricted cash, beginning of the period | $19977 | $86105 |
| Cash and cash equivalents, and restricted cash, end of the period | $77096 | $122557 |

---

------

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements*

**CIPHER MINING INC.**

**CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - CONTINUED**

(in thousands)

(unaudited)

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **Supplemental disclosure of noncash investing and financing activities** |  |  |
| &nbsp;&nbsp;&nbsp; Bitcoin transferred for rehypothecated collateral | $31720 | $- |
| &nbsp;&nbsp;&nbsp; Bitcoin loan payments  | $26987 | $- |
| &nbsp;&nbsp;&nbsp; Bitcoin received as a loan  | $16551 | $- |
| &nbsp;&nbsp;&nbsp; Bitcoin received from equity investees | $13857 | $5907 |
| &nbsp;&nbsp;&nbsp; Initial estimate of asset retirement obligation and related capitalized costs | $10743 | $- |
| &nbsp;&nbsp;&nbsp; Bitcoin purchase option  | $8820 | $- |
| &nbsp;&nbsp;&nbsp; Reclassification of deposits on equipment to property and equipment | $7480 | $13799 |
| &nbsp;&nbsp;&nbsp; Property and equipment purchases in accounts payable and accrued expenses | $3676 | $- |
| &nbsp;&nbsp;&nbsp; Sales tax accrual on machines placed in service  | $2132 | $- |
| &nbsp;&nbsp;&nbsp; Treasury stock reissued for PIPE investment | $10 | $- |
| &nbsp;&nbsp;&nbsp; Settlement of related party payable related to master services and supply agreement | $- | $1554 |
| &nbsp;&nbsp;&nbsp; Right-of-use asset obtained in exchange for finance lease liability | $- | $3414 |

---

The following table provides a reconciliation of Cash and cash equivalents together with Restricted cash as reported within the Consolidated Balance Sheets to the sum of the same such amounts shown in the Consolidated Statements of Cash Flows.

---

| | | |
|:---|:---|:---|
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Cash and cash equivalents | $62704 | $122557 |
| Restricted cash | 14392 | - |
| Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $77096 | $122557 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

**NOTE 1. ORGANIZATION**

***Nature of operations***

Cipher Mining Inc. ("Cipher" or the "Company") is focused on the development and operation of industrial-scale data centers for bitcoin mining and high-performance compute ("HPC") hosting. The Company operates two wholly-owned bitcoin mining data centers, a 207 MW site located in Odessa, Texas that draws fixed priced power from a power purchase agreement with its electricity provider (the "Odessa Facility"), and a 300 MW data center in Wink, Texas that draws power from the power grid (the "Black Pearl Facility") and has equity investments in three partially-owned joint venture bitcoin mining data centers. The Company's portfolio as of June 30, 2025 also includes three wholly-owned sites which have not commenced operations, and options to acquire three additional wholly-owned sites.

***Risks and uncertainties***

*Liquidity and capital resources*

The Company has historically experienced net losses and negative cash flows from operations; however, proceeds from sales of bitcoin are categorized as cash flows from investing activities to the extent bitcoin is sold after seven days of receipt. As of June 30, 2025, the Company had approximate balances of cash and cash equivalents of $62.7 million, working capital of $167.2 million, total stockholders' equity of $748.9 million and an accumulated deficit of $266.2 million. The Company uses a combination of proceeds from sales of bitcoin earned by or received from its bitcoin mining data centers, short-term and long-term financing arrangements, and strategic sales of shares through "at-the-market" offerings to support its operating expenses and capital expenditures.

The Company monitors its balance sheet on an ongoing basis to determine the proper mix of bitcoin retention and bitcoin sales to support its cash requirements, ongoing operations, and capital expenditures. Bitcoin is classified as a current asset on the Company's balance sheets due to its intent and ability to sell bitcoin to support operations when needed. Approximately $103.5 million of cash was used for operating activities during the six months ended June 30, 2025.

During the six months ended June 30, 2025, the Company sold bitcoin for proceeds of approximately $121.4 million, paid approximately $162.4 million for deposits on equipment primarily related to new miner purchases, and paid approximately $55.9 million for property and equipment primarily related to the build-out of the Black Pearl Facility.

The Company has a master loan agreement with Coinbase Credit, Inc., as Lender, and Coinbase, Inc., as Lending Service Provider (the "Coinbase Master Loan Agreement"). Pursuant to the master loan agreement, the Company has a secured line of credit up to $25.0 million (the "Coinbase Overnight Credit Facility"), and a term loan facility with Coinbase with a limit of $35.0 million and maximum period of one year (the "Term Loan Facility"). As described in more detail in *Note 14. Debt*, the borrowings are collateralized by bitcoin transferred to the Lending Service Provider's platform.

On May 22, 2025, the Company issued $172.5 million principal amount of convertible notes due in 2030 with an interest rate of 1.75% (the "2030 Convertible Notes"). The 2030 Convertible Notes are senior, unsecured obligations with interest due semiannually on May 15 and November 15 each year beginning on November 15, 2025. Refer to *Note 14. Debt* for more details.

Management believes that the Company's existing financial resources, combined with projected cash and bitcoin inflows from its data centers, its ability to sell bitcoin received or earned, and its intent and ability to sell common stock through at-the-market offerings will be sufficient to enable the Company to meet its operating and capital requirements for at least 12 months from the date these condensed consolidated financial statements are issued.

**NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of presentation and principles of consolidation***

The Company prepares its unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the U.S. ("GAAP") as determined by the FASB and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission ("SEC").

The unaudited condensed consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All intercompany transactions and balances have been eliminated.

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

Certain prior year amounts have been reclassified for consistency with the current period presentation. Effective for the year ended December 31, 2024, the Company changed the presentation of its consolidated income statement to separately disclose Unrealized gains (losses) on fair value of bitcoin and Realized (losses) gains on sale of bitcoin. The Company believes this presentation provides increased transparency on the nature of the respective financial statement line items. As a result, the Company reported $21.2 million and $4.9 million as Unrealized losses on fair value of bitcoin and Realized gains on sale of bitcoin, respectively, for the three months ended June 30, 2024 and $19.4 million and $4.9 million as Unrealized gains on fair value of bitcoin and Realized gains on sale of bitcoin, respectively, for the six months ended June 30, 2024, which were previously reported aggregated in Gains on fair value of bitcoin.

***Use of estimates***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The most significant estimates inherent in the preparation of the Company's financial statements include, but are not limited to, those related to equity instruments issued in share-based compensation arrangements, valuation of its level 3 asset, useful lives of property and equipment, the asset retirement obligation and the valuation allowance associated with the Company's deferred tax assets, among others. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

***Unaudited condensed consolidated financial statements***

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of the Company's management, these unaudited condensed consolidated financial statements reflect all adjustments, which consist of only normal recurring adjustments necessary for the fair presentation of the balances and results for the periods presented. These unaudited condensed consolidated financial statement results are not necessarily indicative of results to be expected for the full fiscal year or any future period.

A detailed description of the Company's significant accounting policies is included in the Company's 2024 Form 10-K. You should read the unaudited condensed consolidated financial statements in conjunction with the Company's audited consolidated financial statements and accompanying notes in the Company's 2024 Form 10-K. There have been no material changes in the information disclosed in the notes to the Company's audited consolidated financial statements included in the Company's 2024 Form 10-K.

***Revenue recognition***

The Company recognizes revenue under ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

The Company recognizes revenue on the same day that the control of the contracted service of providing hashrate transfers to the mining pool operator, which is the same day as contract inception. The noncash consideration received in the form of bitcoin is measured at 0:00:00 Coordinated Universal Time ("UTC") using the Company's principal market for bitcoin.

The contract is terminable at any time by either party with no substantive termination penalty. The Company's enforceable right to compensation begins when, and lasts for as long as, the Company provides computing power to the mining pool operator; the Company's performance obligation extends over the contract term given the Company's continuous provision of hashrate. This period of time corresponds with the period of service for which the mining pool operator determines

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

compensation due the Company. Given the terms of the contract, and the Company's customary business practice, the contract effectively provides the Company with a contract that continuously renews throughout the day.

***Segment information***

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company has one operating segment, Bitcoin Mining, which through operations produces bitcoin to generate revenue. The Chief Operating Decision Maker ("CODM") for the Company consists of the chief executive officer ("CEO"), and chief financial officer ("CFO"). The CODM reviews the performance of its segment primarily based on operating income when deciding on allocating resources between reinvesting in Bitcoin Mining or exploring alternative deployment of resources.

***Restricted cash***

Restricted cash represents amounts pledged as collateral to Luminant ET Services Company LLC ("Luminant", and Vistra Operations Company, LLC ("Vistra"), a Luminant affiliate, primarily related to the Luminant Power Agreement (defined below in *Note 4. Derivative Asset)*. The collateral restrictions related to the Luminant Power Agreement will lapse upon termination of the agreement.

***Earnings per share***

Basic earnings (loss) per share is computed by dividing net income (loss) allocated to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per common share adjusts net income (loss) and net income (loss) per common share for the effect of all potentially dilutive shares of Common Stock. Potentially dilutive common shares consist of the Company's outstanding warrants to purchase Common Stock, Common Stock to settle convertible notes, as well as unvested restricted stock units ("RSUs").

The dilutive effect of RSUs was calculated using the treasury stock method. For warrants that are liability-classified, during periods when the impact is dilutive, the Company assumes share settlement of the instruments as of the beginning of the reporting period and adjusts the numerator to remove the change in fair value of the warrant liability and adjusts the denominator to include the dilutive shares calculated using the treasury stock method.

The Company's potentially dilutive common shares have been excluded from the computation of diluted net loss per common share when the effect would be to reduce the net loss per common share, or increase the net income per common share.

The following is a reconciliation of the numerator and denominator of the diluted earnings (loss) per share computations for the periods indicated below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Basic and diluted loss per share:** |  |  |  |  |
| Net (loss) income | $(45781) | $(15291) | $(84756) | $24609 |
| Weighted average shares outstanding - basic | 375052248 | 314353742 | 367823593 | 305497621 |
| Add: |  |  |  |  |
| &nbsp;&nbsp;RSUs | - | - | - | 11154679 |
| Weighted average shares outstanding - diluted | 375052248 | 314353742 | 367823593 | 316652300 |
| Net (loss) income per share - basic and diluted | $(0.12) | $(0.05) | $(0.23) | $0.08 |

---

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

The following table presents the common share equivalents that are excluded from the computation of diluted earnings (loss) per common share at June 30, 2025 and 2024, because including them would have been antidilutive.

---

| | | |
|:---|:---|:---|
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Public warrants | 8,613,980 | 8,613,980 |
| Unvested RSUs | 27,056,741 |  |
| Note Conversion | 50,438,686 | 0 |
| | 86,109,407 | 8,613,980 |

---

***Recently adopted accounting pronouncements***

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* ("ASU 2023-09")*.* ASU 2023-09 seeks to improve transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disclosures. The Company adopted this standard on January 1, 2025 and it did not have a significant impact on its condensed consolidated financial statements.

***Recently issued accounting pronouncements***

The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company's financial reporting, the Company undertakes to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company's financial statements 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 Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
| | **2025** | **2024** |
| **Opening balance** | $92651 | $32978 |
| &nbsp;&nbsp;&nbsp;Bitcoin received from equity investees | 13857 | 5907 |
| &nbsp;&nbsp;&nbsp;Bitcoin received from mining activities | 67270 | 85281 |
| &nbsp;&nbsp;&nbsp;Bitcoin received from loan | 16551 | - |
| &nbsp;&nbsp;&nbsp;Bitcoin loan payments | (140) | - |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of bitcoin | (121352) | (10334) |
| &nbsp;&nbsp;&nbsp;Realized gains on sales of bitcoin, net<sup>(1)</sup> | 8557 | 4869 |
| &nbsp;&nbsp;&nbsp;Unrealized (losses) gains on bitcoin | (3035) | 19378 |
| &nbsp;&nbsp;&nbsp;Realized loss on bitcoin transferred to collateral, net<sup>(2)</sup> | (3195) | - |
| &nbsp;&nbsp;&nbsp;Bitcoin transferred from collateral, net | 40925 | - |
| **Ending balance** | $112089 | $138079 |
| (1) Realized losses from sale of bitcoin were immaterial in all periods presented. | (1) Realized losses from sale of bitcoin were immaterial in all periods presented. | (1) Realized losses from sale of bitcoin were immaterial in all periods presented. |
| (2) Realized loss on bitcoin transferred to collateral, net is classified under other income (expense) on the condensed consolidated statement of operations | (2) Realized loss on bitcoin transferred to collateral, net is classified under other income (expense) on the condensed consolidated statement of operations | (2) Realized loss on bitcoin transferred to collateral, net is classified under other income (expense) on the condensed consolidated statement of operations |

---

The Company held approximately 1,046 and 994 bitcoin at June 30, 2025, and December 31, 2024, respectively. The associated fair values and cost bases of bitcoin held were $112.1 million, and $102.2 million, respectively, at June 30, 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.

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

As of June 30, 2025, the Company had no bitcoin pledged as collateral related to the Coinbase Overnight Credit Facility. As of December 31, 2024, the Company had 345 bitcoin with a fair value of $32.2 million pledged as collateral related to the Coinbase Overnight Credit Facility. Restrictions on this bitcoin pledged as collateral 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 June 30, 2025, the Company had 8 bitcoin with a fair value of $0.9 million pledged relating to bitcoin trading strategies. Restrictions on this collateral will lapse in August 2025. As of December 31, 2024 the Company had no bitcoin pledged as part of trading strategies.

**NOTE 4. DERIVATIVE ASSET**

*Luminant Power Agreement*

On 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, August 26, 2022, and August 23, 2023 (as amended, the "Luminant Power Agreement"), for the supply of a fixed amount of electric power to the Odessa Facility at a fixed price for a term of five years, subject to certain early termination exemptions. The Luminant Power Agreement provides for subsequent automatic annual renewal unless either party provides written notice to the other party of its intent to terminate the agreement at least six months prior to the expiration of the then current term.

The Company's management determined that the Luminant Power Agreement meets the definition of a derivative under ASC 815, *Derivatives and Hedging* ("ASC 815"). Accordingly, the Luminant Power Agreement is recorded at its estimated fair value each reporting period with the change in the fair value recorded in change in fair value of derivative asset in the consolidated statements of operations. See additional information regarding valuation of the Luminant Power Agreement derivative in *Note 18. Fair Value Measurements*.

The Company may opportunistically sell electricity in the ERCOT market in exchange for cash payments, rather than utilizing the power to mine for bitcoin at the Odessa Facility to manage the Company's operating costs. From Power sales, the Company earned approximately $1.4 million and $1.1 million for the three months ended June 30, 2025, and 2024, respectively, and $2.4 million and $2.3 million for the six months ended June 30, 2025, and 2024, respectively, and recorded this amount within Costs and operating (expenses) income on the condensed consolidated statement of operations, with the corresponding cost of the power sold recorded in Cost of revenue.

**NOTE 5. PROPERTY AND EQUIPMENT**

Property and equipment, net consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Miners and mining equipment | $341475 | $342111 |
| Leasehold improvements | 149867 | 137582 |
| Land | 58330 | 49021 |
| Buildings | 53104 |  |
| Infrastructure | 101904 | 28166 |
| Other | 846 | 606 |
| Construction-in-progress | 11929 | 82017 |
| Total cost of property and equipment | 717455 | 639503 |
| Less: accumulated depreciation | (243568) | (158638) |
| Property and equipment, net | $473887 | $480865 |

---

As of June 30, 2025, the Company had approximately $11.9 million of construction-in-progress primarily related to the additional construction at the Black Pearl Facility. For the six months ended June 30, 2025, $126.3 million of Construction-

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

in-progress related to the build out of the Black Pearl Facility was reclassified primarily into Buildings of $53.2 million with a useful life of 20 years, and Infrastructure of $71.6 million with a useful live of 10-20 years.

In June 2025, as part of placing the assets related to the Black Pearl Facility into service, the Company recorded an asset retirement obligation for the Black Pearl Facility to restore the land to its original condition at the end of the lease for $10.7 million, to be depreciated straight-line over the estimated remaining useful lives of the assets related to the facility.

Depreciation expense was approximately $43.9 million and $20.3 million respectively, for the three months ended June 30, 2025, and 2024, respectively, and included approximately $0.6 million and $0.6 million of accretion expense related to the Company's asset retirement obligations, and $87.2 million and $37.2 million, respectively, for the six months ended June 30, 2025 and 2024, respectively, and included approximately $1.1 million and $0.9 million for the six months ended June 30, 2025 and 2024, of accretion expense related to the Company's asset retirement obligations.

**NOTE 6. DEPOSITS ON EQUIPMENT**

In the fourth quarter of 2023, the Company entered into an agreement with Bitmain to purchase 7.1 EH/s of miners to be delivered in the first half of 2025 (the "Future Sales and Purchase Agreement"), all of which have been delivered with no remaining amount to be paid. In addition to amending the agreement on June 5, 2024 (such amendment, the "Supplemental Agreement") to upgrade the miners and accelerate the delivery from the first half of 2025 to the fourth quarter of 2024, the Future Sales and Purchase Agreement also has an option to purchase an additional 8.7 EH/s in 2024. The Company paid $12.2 million upon signing the agreement in the fourth quarter of 2023 as a deposit, which can be used towards purchases under this option. On July 10, 2024, the Company entered into an agreement to further amend the Future Sales and Purchase agreement (the "Amendment Agreement"). The Amendment Agreement upgraded the miners to be purchased under the option, and extended the option expiration from December 31, 2024 to June 30, 2025.

On May 16, 2025, the Amendment Agreement was subsequently amended to reduce the total amount due to Bitmain under the Future Sales and Purchase Agreement and Supplemental Agreement from $120.2 million to $108.2 million, accelerate payment due under these agreements from progress payments through November 2025 to one payment due within 14 days of the execution of the new amendment, and provide the Company with a call option to purchase 493 bitcoin for $60.1 million with an expiration of August 30, 2025 and a call option to purchase 493 bitcoin for $60.1 million with an expiration of November 30, 2025 contingent upon exercising the first option (the "Bitmain Bitcoin Options"). The Company has paid nonrefundable deposits for miners of $165.9 million for this order as of June 30, 2025. The Bitmain Bitcoin Options are accounted for as derivatives and are classified in Prepaid expenses and other current assets as the expiration is within one year, and are carried at fair value. The loss on fair value of the Bitmain Bitcoin Options for the three and six months ended June 30, 2025 was $3.8 million and is recorded in Other expense in the condensed consolidated statement of operations.

In the second quarter of 2024, the Company entered into an agreement with Canaan to purchase 1.25 EH/s of miners to be delivered in the fourth quarter of 2024, all of which have been delivered with no remaining amount to be paid. Additionally, the contract included an option to purchase up to 160 MW of miners which the Company can exercise on or before June 30, 2025. The Company paid a deposit of $5.3 million associated with the option. Subsequent to quarter end, on July 2, 2025, the Company reached an agreement with Canaan to exercise the option to obtain 25 MW of miners for $21.3 million, and the Company paid an additional $8.5 million in deposits related to this order.

In the fourth quarter of 2024, the Company made a nonrefundable deposit with American Electric Power Company, Inc. ("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 accounts for its 49% equity ownership in each of Alborz LLC, Bear LLC and Chief Mountain LLC (the "Data Center LLCs") using the equity method of accounting. The Company's joint venture partner holds the remaining equity in each Data Center LLC entity.

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 below 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

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

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 June 30, 2025, the Company had remaining basis differences totaling approximately $7.1 million that have not yet been accreted.

Activity in the Company's investments in equity investees during the six months ended June 30, 2025, and 2024, consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
| | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
| | **2025** | **2024** |
| **Opening balance** | $53908 | $35258 |
| &nbsp;&nbsp;&nbsp;Cost of contributed mining equipment and other capital contributions | 12842 | 20437 |
| &nbsp;&nbsp;&nbsp;Accretion of basis differences related to miner contributions | 3199 | 3342 |
| &nbsp;&nbsp;&nbsp;Bitcoin received from equity investees | (13857) | (5907) |
| &nbsp;&nbsp;&nbsp;Equity in net losses of equity investees | (10191) | (3181) |
| **Ending Balance** | $45901 | $49949 |

---

**NOTE 8. INTANGIBLE ASSETS**

The Company's intangible assets consisted of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Gross Carrying Amount** | **Accumulated Amortization**  | **Net Carrying Amount** |
| Strategic contract | $7000 | $(554) | $6446 |
| Capitalized software | 3389 | (606) | 2783 |
| Total | $10389 | $(1160) | $9229 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Gross Carrying Amount** | **Accumulated Amortization** | **Net Carrying Amount** |
| Strategic contract | $7000 | $(379) | $6621 |
| Capitalized software | 2653 | (393) | 2260 |
| Total | $9653 | $(772) | $8881 |

---

The Company recorded amortization expense related to intangible assets of $0.2 million and $0.4 million for the three and six months ended June 30, 2025, respectively, and $0.2 million and $0.3 million for the three and six months ended June 30, 2024, respectively. The Company expects to record amortization expense as follows over the next five subsequent years:

---

| | |
|:---|:---|
| | **(in thousands)** |
| Remaining Year Ended December 31, 2025 | $413 |
| Year Ended December 31, 2026 | 827 |
| Year Ended December 31, 2027 | 827 |
| Year Ended December 31, 2028 | 735 |
| Year Ended December 31, 2029 | $525 |

---

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

**NOTE 9. SECURITY DEPOSITS**

The Company's security deposits consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Oncor Facility Extension security deposit related to Black Pearl Facility | 6269 | 6269 |
| Oncor Facility Extension security deposit related to Barber Lake Facility |  | 8297 |
| Oncor Facility Extension security deposit related to Stingray Facility | 4244 | 4244 |
| Other deposits | 3281 | 972 |
| &nbsp;&nbsp;&nbsp;Total security deposits | $13794 | $19782 |

---

As part of various transactions to acquire wholly-owned sites, the Company has deposits with Oncor Electric Delivery Company LLC ("Oncor") to construct infrastructure to provide the ability to energize each data center. These deposits are eligible to be returned to the Company if the data centers energize an agreed upon capacity within an agreed upon timeframe. As of June 30, 2025 the Company believes these deposits will be returned.

**NOTE 10. SUPPLEMENTAL FINANCIAL INFORMATION**

Prepaid expenses and other current assets were $7.4 million and $3.4 million as of June 30, 2025 and December 31, 2024, respectively, primarily consisting of the Bitmain Bitcoin Option as of June 30, 2025, and prepaid insurance as of December 31, 2024.

The Company's accrued expenses and other current liabilities consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Taxes (primarily sales tax) | $16200 | $14607 |
| Professional fees | 4883 | 4449 |
| Employee compensation | 4257 | 8246 |
| Power costs | 3862 |  |
| Other | 907 | 1329 |
| Construction costs | 71 | 2675 |
| Barber Lake site deposit payable |  | 8297 |
| Remaining payments for miners in service |  | 30221 |
| &nbsp;&nbsp;&nbsp;Total accrued expenses and other current liabilities | $30180 | $69824 |

---

**NOTE 11. RELATED PARTY TRANSACTIONS**

***Related party receivables***

The Company recorded related party receivables of approximately $0.2 million and $2.1 million, as of June 30, 2025 and December 31, 2024, respectively, representing amounts owed to the Company from its equity method investees.

***Board Observer Agreement***

On April 8, 2022, the Company entered into an observer agreement (the "Board Observer Agreement") with Bitfury Holding and Bitfury Top HoldCo (together with Bitfury Holding, the "Investors"), which provides that the Investors have the right to designate a representative to serve as an observer of the Board and any committees thereof (subject to exceptions and limitations specified in the Board Observer Agreement). The Board Observer Agreement was negotiated and approved by an independent committee of the Board. On July 22, 2025, the Company terminated the Board Observer Agreement with the Investors.

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

**NOTE 12. LEASES**

***Odessa Facility Lease***

The Company entered into a series of agreements with affiliates of Luminant, including the Lease Agreement dated June 29, 2021, with amendment and restatement on July 9, 2021 and August 23, 2023 (as amended and restated, the "Luminant Lease Agreement"). The Luminant Lease Agreement leases a plot of land to the Company for the data center, ancillary infrastructure and electrical system (the "Interconnection Electrical Facilities" or "substation") of the Odessa Facility. The Company entered into the Luminant Lease Agreement and the Luminant Purchase and Sale Agreement to build the infrastructure necessary to support its Odessa Facility operations. The Company determined that the Luminant Lease Agreement and the Luminant Purchase and Sale Agreement should be combined for accounting purposes under ASC 842 (collectively, the "Combined Luminant Lease Agreement") and that amounts exchanged under the combined contract should be allocated to the various components of the overall transaction based on relative fair values. The Combined Luminant Lease Agreement is classified as a finance lease.

The Combined Luminant Lease Agreement commenced on November 22, 2022 and has an initial term of five years, with renewal provisions that are aligned with the Luminant Power Agreement. Financing for use of the land and substation is provided by Luminant affiliates.

At the end of the lease term for the Interconnection Electrical Facilities, the substation will be sold back to Luminant's affiliate, Vistra Operations Company, LLC at a price to be determined based upon bids obtained in the secondary market.

***Black Pearl Facility Lease***

The Company and its wholly-owned subsidiary, Cipher Black Pearl LLC ("Black Pearl"), assumed a lease for a 70 acre plot of land in Winkler County, Texas, for the purpose of constructing a data center, and ancillary infrastructure to construct the Black Pearl Facility. The initial term of the lease is ten years, and includes four consecutive renewal options for ten years each.

***Reveille Facility Lease***

The Company and its wholly-owned subsidiary, Cipher Reveille LLC ("Reveille"), assumed a lease for a 52 acre plot of land in LaSalle, Texas, for the purpose of constructing a data center, and ancillary infrastructure to construct the Reveille Facility. The initial term of the lease is ten years, and includes two consecutive renewal options for ten years each.

***Office and warehouse leases***

The Company leases office space for its headquarters in New York, New York, and office space in Charleston, South Carolina, and Denver, Colorado.

In April 2025, the Company entered into a commercial lease for a warehouse in Odessa, Texas

All of the Company's office leases are classified as operating leases.

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

***Additional lease information***

Components of the Company's lease expenses are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Finance leases:** |  |  |  |  |
| Amortization of ROU assets <sup>(1)</sup> | $761 | $761 | $1522 | $1522 |
| Interest on lease liability | 272 | 370 | 570 | 762 |
| &nbsp;&nbsp;&nbsp;Total finance lease expense | 1033 | 1131 | 2092 | 2284 |
| **Operating leases:** |  |  |  |  |
| Operating lease expense | 660 | 548 | 1285 | 987 |
| &nbsp;&nbsp;&nbsp;Total operating lease expense | 660 | 548 | 1285 | 987 |
| &nbsp;&nbsp;&nbsp;Total lease expense | $1693 | $1679 | $3377 | $3271 |
| <sup>(1)</sup>Amortization of finance lease ROU asset is included within depreciation expense. | <sup>(1)</sup>Amortization of finance lease ROU asset is included within depreciation expense. | <sup>(1)</sup>Amortization of finance lease ROU asset is included within depreciation expense. | <sup>(1)</sup>Amortization of finance lease ROU asset is included within depreciation expense. | <sup>(1)</sup>Amortization of finance lease ROU asset is included within depreciation expense. |

---

The Company did not incur any variable lease costs during any of the periods presented.

Other information related to the Company's leases is shown below (dollar amounts in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Operating cash flows - operating lease | $565 | $438 | $1078 | $839 |
| Right-of-use asset obtained in exchange for operating lease liabilities | $491 | $— | 491 | $— |

---

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Weighted-average remaining lease term – finance lease (in years) | 2.2 | 2.7 |
| Weighted-average remaining lease term – operating lease (in years) | 7.6 | 8.0 |
| Weighted-average discount rate – finance lease | 11.0% | 11.0% |
| Weighted-average discount rate – operating lease | 8.0% | 8.0% |
| Finance lease ROU assets<sup>(1)</sup> | $6595 | $8117 |

---

<sup>(1)</sup> As of June 30, 2025, the Company recorded accumulated amortization of $5.8 million for the finance lease ROU asset. Finance lease ROU assets are recorded within property and equipment, net on the Company's consolidated balance sheets.

As of June 30, 2025, future minimum lease payments during the next five years are as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Finance Lease**  | **Operating Lease**  | **Total**  |
| Remaining Year Ended December 31, 2025 | $2417 | $3183 | $5600 |
| Year Ended December 31, 2026 | 4834 | 2491 | 7325 |
| Year Ended December 31, 2027 | 3223 | 2502 | 5725 |
| Year Ended December 31, 2028 |  | 2284 | 2284 |
| Year Ended December 31, 2029 |  | 1111 | 1111 |
| Thereafter |  | 6668 | 6668 |
| &nbsp;&nbsp;&nbsp;Total lease payments | 10474 | 18239 | 28713 |
| Less present value discount | (1193) | (5742) | (6935) |
| &nbsp;&nbsp;&nbsp;Total | $9281 | $12497 | $21778 |

---

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

**NOTE 13. COMMITMENTS AND CONTINGENCIES** 

***Commitments***

In the normal course of business, the Company enters into contracts that contain a variety of indemnifications with its employees, licensors, suppliers and service providers. The Company's maximum exposure under these arrangements, if any, is unknown as of June 30, 2025.

***Contingencies***

The Company, and its subsidiaries, are subject at times to various claims, lawsuits and governmental proceedings relating to the Company's business and transactions arising in the ordinary course of business. The Company cannot predict the final outcome of such proceedings. Where appropriate, the Company vigorously defends such claims, lawsuits and proceedings. Some of these claims, lawsuits and proceedings seek damages, including consequential, exemplary or punitive damages, in amounts that could, if awarded, be significant. Certain of the claims, lawsuits and proceedings arising in the ordinary course of business are covered by the Company's insurance program. The Company maintains property and various types of liability insurance in an effort to protect the Company from such claims. In terms of any matters where there is no insurance coverage available to the Company, or where coverage is available and the Company maintains a retention or deductible associated with such insurance, the Company may establish an accrual for such loss, retention or deductible based on current available information. In accordance with accounting guidance, if it is probable that an asset has been impaired or a liability has been incurred as of the date of the financial statements, and the amount of loss is reasonably estimable, then an accrual for the cost to resolve or settle these claims is recorded by the Company in the accompanying consolidated balance sheets. If it is reasonably possible that an asset may be impaired as of the date of the financial statements, then the Company discloses the range of possible loss. Expenses related to the defense of such claims are recorded by the Company as incurred and included in the accompanying consolidated statements of operations. Management, with the assistance of outside counsel, may from time to time adjust such accruals according to new developments in the matter, court rulings, or changes in the strategy affecting the Company's defense of such matters. On the basis of current information, the Company does not believe there is a reasonable possibility that a material loss, if any, will result from any claims, lawsuits and proceedings to which the Company is subject to either individually, or in the aggregate.

***Litigation***

The Company is not a party to any material legal proceedings and is not aware of any pending or threatened claims. From time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities.

**NOTE 14. DEBT**

***Short-term borrowings***

*Coinbase Master Loan Agreement*

The Company has the Coinbase Master Loan Agreement, under which the Company established the Coinbase Overnight Credit Facility of $25.0 million. The Company will not incur commitment fees for unused portions of the Coinbase Overnight Credit Facility. The borrowing rate on amounts drawn against the Credit Facility is determined based on the Federal Funds Target Rate - Upper Bound, plus 2.5%, calculated daily based on a 365-day year and payable monthly for the duration of the loan, and market demand. Borrowings under the Coinbase Overnight Credit Facility are available on demand, open term, and collateralized by bitcoin transferred to the Lending Service Provider's platform. Since the Lender has the right to rehypothecate the bitcoin held as collateral, the Company derecognized the bitcoin transferred. The Company has the right to receive the bitcoin back from the Lender upon repayment of the Coinbase Overnight Credit Facility, and as such recognized a receivable for bitcoin collateral measured at fair value of the bitcoin to be received upon repayment. The Company may also withdraw bitcoin if the loan becomes over-collateralized due to increases in bitcoin price.

Under the Coinbase Master Loan Agreement, the Company also established the "Term Loan Facility" with a limit of $35.0 million and maximum period of one year, with an interest rate to be determined upon drawdown.

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

As of June 30, 2025, the Company had nothing outstanding on the Coinbase Overnight Credit Facility. The Company had $25.0 million balance outstanding on the Coinbase Overnight Credit Facility at a weighted average interest rate of 9.5% as of December 31, 2024. The Company had no balance outstanding on the Term Loan Facility as of June 30, 2025 or December 31, 2024.

*Luxor Purchase and Sale Agreement*

The Company has the ability to enter into agreements with Luxor Technology Corporation ("Luxor") to borrow bitcoin to be repaid at a fixed amount of bitcoin per day over fixed periods. The Company records the outstanding balance at fair value in Short-term borrowings based on the current bitcoin price, with changes in fair value recorded in Other income.

As of June 30, 2025, the Company had no ongoing transactions with Luxor under the Luxor Purchase and Sales Agreement. As of December 31, 2024 the Company owed approximately 80.3 bitcoin valued at $7.3 million related to this agreement.

***Long-term borrowings***

The following summarizes the Company's long-term borrowings, net of debt issuance costs:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **<u>Maturity Date</u>** | **<u>Interest Rate</u>** | **<u>Outstanding Principal</u>** | **<u>Deferred Debt Issuance Costs</u>** | **<u>Outstanding Borrowings, net</u>** |
| **Long-term borrowings:** | | | | | |
| 2030 Convertible Notes | May 2030 | 1.75% | $172500 | $5387 | $167113 |
|  |  |  | $172500 | $5387 | $167113 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **<u>Maturity Date</u>** | **<u>Interest Rate</u>** | **<u>Outstanding Principal</u>** | **<u>Deferred Debt Issuance Costs</u>** | **<u>Outstanding Borrowings, net</u>** |
| **Long-term borrowings:** | | | | | |
|  |  |  | $— | $— | $— |

---

*2030 Convertible Notes*

On May 22, 2025, the Company issued $172.5 million principal amount of the 2030 Convertible Notes with an interest rate of 1.75% (the "2030 Notes"). The 2030 Convertible Notes are senior, unsecured obligations with interest due semiannually on May 15 and November 15 each year beginning on November 15, 2025. The 2030 Notes will mature on May 15, 2030, unless earlier repurchased, redeemed or converted.

Before February 15, 2030, noteholders will have the right to convert their 2030 Convertible Notes only upon the occurrence of certain events. From and after February 15, 2030, noteholders may convert their 2030 Convertible Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. The Company will settle conversions by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company's election. As the Company has the option to settle in shares, these shares are considered potentially dilutive for the calculation of diluted earnings per share. The initial conversion rate is 224.9213 shares of the Company's common stock per $1,000 principal amount of 2030 Convertible Notes, which represents an initial conversion price of approximately $4.45 per share of the Company's common stock.

The 2030 Convertible Notes will be redeemable, in whole or in part (subject to certain limitations), at the Company's option at any time, and from time to time, on or after May 22, 2028 and on or before the 30th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of the Company's common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (2) the trading day immediately before the date the Company sends such redemption notice. However, the Company may not redeem less than all of the outstanding 2030 Convertible Notes unless at least $50.0 million aggregate principal amount of 2030 Convertible Notes are outstanding and not called for redemption as of the time the Company sends the related redemption notice.

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

**NOTE 15. STOCKHOLDERS' EQUITY**

As of June 30, 2025, 510,000,000 shares with a par value of $0.001 per share are authorized, of which, 500,000,000 shares are designated as Common Stock and 10,000,000 shares are designated as preferred stock ("Preferred Stock").

***Common Stock***

Holders of each share of Common Stock are entitled to dividends when, as and if declared by the Board. As of the issuance of these consolidated financial statements, the Company had not declared any dividends. The holder of each share of Common Stock is entitled to one vote. The voting, dividend, liquidation and other rights and powers of the Common Stock are subject to and qualified by the rights, powers and preferences of any outstanding series of Preferred Stock, for which there currently are none outstanding.

During the six months ended June 30, 2025, the Company issued 2,998,232 shares of Common Stock to officers, employees and consultants in settlement of an equal number of fully vested RSUs awarded to these individuals, and 358,206 shares of Common Stock to directors, pursuant to grants made under the Cipher Mining Inc. 2021 Incentive Award Plan (the "Incentive Award Plan"). The Company immediately repurchased 1,154,823 of these shares of Common Stock from officers and employees, with a fair value of approximately $4.3 million, to cover taxes related to the settlement of vested RSUs, as permitted by the Incentive Award Plan. The Company placed the repurchased shares in treasury stock.

***At-the-Market Sales Agreement***

On September 21, 2022, the Company filed with the SEC a shelf registration statement on Form S-3, which was declared effective on October 6, 2022 (the "Registration Statement").

On August 3, 2023, the Company entered into a Controlled Equity Offering<sup>SM</sup> Sales Agreement (the "Sales Agreement") with Cantor Fitzgerald & Co., Canaccord Genuity LLC, Needham & Company, LLC and Compass Point Research & Trading, LLC (each, an "Original Agent" and, together, the "Original Agents"), pursuant to which the Company may offer and sell, from time to time through or to the Agents, shares of its Common Stock, for aggregate gross proceeds of up to $250.0 million. The offering and sale of up to $250.0 million of the shares has been registered under the Registration Statement, the base prospectus contained within the Registration Statement, and a prospectus supplement that was filed with the SEC on August 4, 2023 (the "Prospectus Supplement").

On March 6, 2024, the Company entered into an amendment (the "Amendment") to the Sales Agreement (as amended, the "Amended Sales Agreement") by and among the Original Agents, Stifel, Nicolaus & Company, Incorporated ("Stifel") and Virtu Americas LLC ("Virtu"). The Amendment modifies the Sales Agreement to include Stifel and Virtu as additional agents under the Amended Sales Agreement. On March 6, 2024, the Company also filed an amendment to the Prospectus Supplement (i) increasing the dollar amount of shares available to be sold pursuant to the Amended Sales Agreement, to $296,560,661, which consists of $96,560,661 remaining as originally authorized under the Prospectus Supplement and an additional $200,000,000, and (ii) including Stifel and Virtu as additional agents.

On September 3, 2024, the Company amended and restated the Amended Sales Agreement (as amended and restated, the "Amended and Restated Sales Agreement") with the Original Agents, Keefe, Bruyette & Woods, Inc. ("KBW"), Virtu and BTIG, LLC ("BTIG") (each, an "Agent" and, together, the "Agents"). The Amended and Restated Sales Agreement modified the Amended Sales Agreement to, among other things, include BTIG as an additional Agent under the Amended and Restated Sales Agreement and to replace Stifel with KBW as an Agent under the Amended and Restated Sales Agreement.

Pursuant to the Amended and Restated Sales Agreement, the Company may offer and sell, from time to time through or to the Agents, shares of the Company's Common Stock, for aggregate gross proceeds of up to $725.7 million (the "Shares"), which consists of (i) up to $125.7 million remaining as authorized under the Company's Registration Statement, the base prospectus contained within the Registration Statement, and the Prospectus Supplement, as amended on September 3, 2024 and (ii) up to $600.0 million of Shares, which can be issued and sold pursuant to the Company's shelf registration statement on Form S-3ASR, filed with the SEC on September 3, 2024, which became immediately effective upon filing, and a prospectus supplement dated September 3, 2024, filed by the Company with the SEC.

Pursuant to the Amended and Restated Sales Agreement, the Agent selected by the Company (such Agent, the "Designated Agent") may sell the Shares in sales deemed to be "at-the-market offerings" as defined in Rule 415(a)(4) promulgated

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

under the Securities Act. The Company has no obligation to sell any of the Shares under the Amended and Restated Sales Agreement and may at any time suspend or terminate the offering of the Shares pursuant to the Amended and Restated Sales Agreement upon notice and subject to other conditions. The Agents will act as sales agents and will use commercially reasonable efforts to sell on the Company's behalf all of the Shares requested to be sold by it, on mutually agreed terms between the Agents and the Company. Under the terms of the Amended and Restated Sales Agreement, the Company agreed to pay the Designated Agent a commission up to 3.0% of the aggregate gross proceeds from any Shares sold through such Designated Agent pursuant to the Amended and Restated Sales Agreement. In addition, the Company agreed to reimburse certain expenses incurred by the Agents in connection with the Amended and Restated Sales Agreement. During the six months ended June 30, 2025, in connection with the Amended and Restated Sales Agreement, the Company received proceeds of $85,664,967, net of issuance costs, from the sale of 23,334,701 shares of common stock, with an average net selling price of $3.67 per share.

**NOTE 16. WARRANTS**

The Company assumed Common Stock warrants that were originally issued in GWAC's initial public offering (the "Public Warrants"), as well as warrants that were issued in a private placement that closed concurrently with GWAC's initial public offering (the "Private Placement Warrants"). The Public and Private Placement Warrants entitle the holder to purchase one share of Common Stock at an exercise price of $11.50 per share, subject to adjustment. There were 8,613,980 Public Warrants and no Private Placement Warrants outstanding as of December 31, 2024, and June 30, 2025. The exercise price and number of shares of Common Stock issuable on exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary dividend or the Company's recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuances of shares of Common Stock at a price below their respective exercise prices. Additionally, in no event will the Company be required to net cash settle the warrants.

**NOTE 17. SHARE-BASED COMPENSATION**

The Cipher Mining Inc. 2021 Incentive Award Plan (the "Incentive Award Plan") provides for the grant of stock options, including incentive stock options and nonqualified stock options, stock appreciation rights, RSUs and other stock or cash-based awards to employees, consultants and directors. Upon vesting of an award, the Company may either issue new shares or reissue treasury shares.

Initially, up to 19,869,312 shares of Common Stock were available for issuance under awards granted pursuant to the Incentive Award Plan. In addition, the number of shares of Common Stock available for issuance under the Incentive Award Plan is increased on January 1 of each calendar year beginning in 2022 and ending in 2031 by an amount equal to the lesser of (a) three percent (3%) of the total number of shares of Common Stock outstanding on the final day of the immediately preceding calendar year and (b) such smaller number of shares determined by the Board. On January 1, 2025, this resulted in an increase of 10,523,515 shares of Common Stock available for issuance under the Incentive Award Plan. As of June 30, 2025, 13,246,079 shares of Common Stock were available for issuance under the Incentive Award Plan.

The Company recognized total share-based compensation in Compensation and benefits on the condensed consolidated statements of operations for the following categories of awards as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Service-based RSUs | $8109 | $10221 | $16350 | $16357 |
| Performance-based RSUs | 2384 | 1824 | 3275 | 3771 |
| Common stock, fully-vested |  | 1292 |  | 1526 |
| &nbsp;&nbsp;&nbsp;Total share-based compensation expense | $10493 | $13337 | $19625 | $21654 |

---

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

***Service-based RSUs***

A summary of the Company's unvested Service-Based RSU activity for the six months ended June 30, 2025 is shown below:

---

| | | |
|:---|:---|:---|
| | **Number of Shares**  | **Weighted Average Grant Date Fair Value** |
| **Unvested at December 31, 2024** | 15922220 | $2.65 |
| &nbsp;&nbsp;&nbsp;Granted | 4270421 | $4.18 |
| &nbsp;&nbsp;&nbsp;Vested<sup>(1)</sup> | (2998232) | $2.73 |
| **Unvested at June 30, 2025** | 17194409 | $3.02 |
| (1) Does not include RSUs that have not settled as of June 30, 2025 | (1) Does not include RSUs that have not settled as of June 30, 2025 | (1) Does not include RSUs that have not settled as of June 30, 2025 |

---

As of June 30, 2025, there was approximately $23.6 million of unrecognized compensation expense related to unvested Service-Based RSUs, which is expected to be recognized over a weighted-average vesting period of approximately 1.0 years.

If not fully vested upon grant, service-based RSUs awarded generally vest over a period ranging from three to four years in installments as determined by the Board.

Vesting is subject to the award recipient's continuous service on the applicable vesting date; provided, that if the award recipient's employment is terminated by the Company without "cause", by award recipient for "good reason" (if applicable, as such term or similar term may be defined in any employment, consulting or similar service agreement between award recipient and the Company) or due to award recipient's death or permanent disability, all unvested service-based RSUs will vest in full (unless otherwise specified in the agreement between the award recipient and the Company). In addition, in the event of a change in control, any unvested service-based RSUs will vest subject to the award recipient's continuous service to the Company through such change in control. In addition, if the Company achieves a $10 billion market capitalization milestone (described further below) and the CEO remains in continuous service through such achievement, any then-unvested service-based RSUs awarded to the CEO will also vest.

***Performance-Based RSUs***

In 2021, the Company issued 4,257,710 performance-based RSUs (the "2021 Performance-Based RSUs") at a weighted average grant date fair value of $7.76. None of the 2021 Performance-Based RSUs were vested as of June 30, 2025. There was no unrecognized compensation expense related to unvested performance-based RSUs at June 30, 2025.

One-third of the outstanding 2021 Performance-Based RSUs will vest upon the Company achieving a market capitalization equal to or exceeding $5 billion, $7.5 billion and $10 billion, in each case over a 30-day lookback period and subject to the CEO's continuous service through the end of the applicable 30-day period. In the event of a change in control and CEO's continuous service through such change in control, the per share price (plus the per share value of any other consideration) received by the Company's stockholders in such change in control will be used to determine whether any of the market capitalization milestones are achieved (without regard to the 30-day lookback period). Any 2021 Performance-Based RSUs that do not vest prior to the CEO's termination of service or, if earlier, in connection with a change in control will be forfeited for no consideration.

On February 26, 2025, the Company issued an additional 2,490,943 Performance-Based RSUs (the "2025 Performance-Based RSUs") to the Company's senior management team under the Incentive Award Plan at a weighted average grant date fair value of $5.01. None of the 2025 Performance-Based RSUs were vested as of June 30, 2025. There was approximately $9.2 million in unrecognized compensation expense related to the 2025 Performance-Based RSUs at June 30, 2025, which is expected to be recognized over a weighted-average vesting period of approximately 1.25 years, regardless of whether the market conditions required for vesting are achieved.

On December 31, 2025 the Company will calculate the number of PSUs expected to vest (the "Earned PSUs"), based upon the Company's common stock achieving certain Total Shareholder Return (TSR) relative to the TSR of peer companies identified in the grant agreements and the overall TSR of the Company for the 2025 calendar year. The number of Earned PSUs will range from 0% to 225% of the number of 2025 Performance-Based RSU's originally granted. Subject to the employee's continuous service through the vesting date, one-third of the Earned PSUs will vest on December 31, 2025 and

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

the remaining two-thirds of the Earned PSUs will vest in equal quarterly installments over the following two years with the first such vesting date occurring on March 31, 2026.

The grant date fair value of the 2025 Performance-Based RSUs was measured using a Monte Carlo simulation model based on the following assumptions:

---

| | |
|:---|:---|
| Risk-free interest rate | 4.14% |
| Expected volatility | 111.5% |

---

**NOTE 18. FAIR VALUE MEASUREMENTS**

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities measured at fair value are classified and disclosed in one of the following categories based on the inputs used to derive the fair value:

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices in markets that are not active and financial instruments for which all significant inputs are observable, either directly or indirectly; or

Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable

The Company's financial assets and liabilities subject to fair value measurement on a recurring basis and the level of inputs used for such measurements were as follows as of the dates indicated (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measured as of June 30, 2025** | **Fair Value Measured as of June 30, 2025** | **Fair Value Measured as of June 30, 2025** | **Fair Value Measured as of June 30, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets included in:** | | | | |
| Cash and cash equivalents |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Money market securities | $21579 | $- | $- | $21579 |
| Restricted cash |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Money market securities | 14392 | - | - | 14392 |
| Bitcoin | 112089 | - | - | 112089 |
| Accounts receivable | 1575 | - | - | 1575 |
| Prepaid expenses and other current assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Bitmain Bitcoin Options | - | 5007 | - | 5007 |
| Derivative asset | - | - | 77520 | 77520 |
|  | $149635 | $5007 | $77520 | $232162 |

---

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measured as of December 31, 2024** | **Fair Value Measured as of December 31, 2024** | **Fair Value Measured as of December 31, 2024** | **Fair Value Measured as of December 31, 2024** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets included in:** | | | | |
| Cash and cash equivalents |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Money market securities | $4314 | $- | $- | $4314 |
| Restricted cash |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Money market securities | 14392 | - | - | 14392 |
| Bitcoin | 92651 | - | - | 92651 |
| Receivable for bitcoin collateral | - | 32248 | - | 32248 |
| Accounts receivable | 596 | - | - | 596 |
| Derivative asset | - | - | 85670 | 85670 |
|  | $111953 | $32248 | $85670 | $229871 |
| **Liabilities included in:** |  |  |  |  |
| Short-term borrowings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Bitcoin loan payable | $7330 | $- | $- | $7330 |
|  | $7330 | $- | $- | $7330 |

---

The Company's financial assets and liabilities not subject to fair value measurement on a recurring basis and the level of inputs used for such measurements were as follows as of the dates indicated (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Total carrying value** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Liabilities included in:** | | | | | |
| Long-term borrowings |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2030 Convertible Notes | $167113 | $- | $222380 | $- | $222380 |
|  | $167113 | $- | $222380 | $- | $222380 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Total carrying value** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Liabilities included in:** | | | | | |
| Long-term borrowings |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;2030 Convertible Notes | $- | $- | $- | $- | $- |
|  | $- | $- | $- | $- | $- |

---

The carrying values reported in the Company's consolidated balance sheets for cash (excluding cash equivalents which are recorded at fair value on a recurring basis), accounts payable and accrued expenses and other current liabilities are reasonable estimates of their fair values due to the short-term nature of these items.

There were no transfers of financial instruments between Level 1, Level 2 and Level 3 during the periods presented.

***Level 3 asset***

The Company's derivative asset, related to the Luminant Power Agreement, is divided between current and noncurrent assets, and was initially recorded on its consolidated balance sheets on the derivative asset's effective date of July 1, 2022, with an offsetting amount recorded to change in fair value of derivative asset in costs and operating expenses on the consolidated statements of operations. Subsequent changes in fair value are also recorded to change in fair value of derivative asset. The Luminant Power Agreement was not designated as a hedging instrument. The estimated fair value of the Company's derivative asset was derived from Level 2 and Level 3 inputs (i.e., unobservable inputs) due to a lack of

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

quoted prices for similar type assets and as such, 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, and a remaining term of approximately 2.1 years. The valuations performed by the third-party valuation firm engaged by the Company utilized pre-tax discount rates of 5.33% and 5.96% as of June 30, 2025 and December 31, 2024, respectively, and include observable market inputs, but also include unobservable inputs based on qualitative judgment related to company-specific risk factors. Unrealized gains associated with the derivative asset within the Level 3 category include changes in fair value that were attributable to amendments to the Luminant Power Agreement, changes to the quoted forward electricity rates, as well as unobservable inputs (e.g., changes in estimated usage rates and discount rate assumptions).

The following table presents the changes in the estimated fair value of the derivative asset measured using significant unobservable inputs (Level 3) for the six months ended June 30, 2025 and 2024 (amounts in thousands):

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| **Opening balance** | $85670 | $93591 |
| &nbsp;&nbsp;&nbsp;Change in fair value | (8150) | 29339 |
| **Ending balance** | $77520 | $122930 |

---

***Level 3 liability***

The Company's Private Placement Warrants (as defined in *Note 16. Warrants*) were its only liability classified within Level 3 of the fair value hierarchy because the fair value is based on significant inputs that are unobservable in the market. The valuation of the Private Placement Warrants used assumptions and estimates the Company believes would be made by a market participant in making the same valuation. As of March 31, 2024, all Private Placement Warrants were converted to Public Warrants, and as such no Private Placement Warrants were outstanding as of June 30, 2025.

The Company engaged a valuation firm to determine the fair value of the Private Placement Warrants using a Black-Scholes option-pricing model and the quoted price of Common Stock. The following table presents significant assumptions utilized in the valuations of the Private Placement Warrants as of the dates indicated:

---

| | |
|:---|:---|
| | **December 31, 2023** |
| Risk-free rate | 4.00% |
| Dividend yield rate | 0.00% |
| Volatility | 124.0% |
| Contractual term (in years) | 2.7 |
| Exercise price | $11.50 |

---

The following table presents changes in the estimated fair value of the Private Placement Warrants (amounts in thousands):

---

| | |
|:---|:---|
| **Balance as of December 31, 2024** | $— |
| &nbsp;&nbsp;&nbsp;Change in fair value |  |
| **Balance as of June 30, 2025** | $— |
| **Balance as of December 31, 2023** | $250 |
| &nbsp;&nbsp;&nbsp;Change in fair value | (250) |
| **Balance as of June 30, 2024** | $— |

---

**NOTE 19. SEGMENT REPORTING**

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

The Company has one operating segment, Bitcoin Mining, which through operations produce bitcoin to generate revenue. The Chief Operating Decision Maker ("CODM") for the Company consists of the CEO and CFO. The CODM reviews the performance of its segment primarily based on operating income when deciding on allocating resources between reinvesting in Bitcoin Mining or exploring alternative deployment of resources. Asset information is not regularly provided to the CODM for resource allocation as a large portion of assets are property and equipment that cannot be repurposed for other revenue streams.

The Company's revenues, significant expenses, operating income, and net income by segment for the six months ended June 30, 2025 and 2024 is summarized in the following table (in thousands):

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

---

| | | |
|:---|:---|:---|
| **Three Months Ended June 30, 2025** | | |
| | **Bitcoin Mining** | **Consolidated** |
| Revenue - bitcoin mining | $43565 | $43565 |
| Costs and operating (expenses) income |  |  |
| Cost of revenue | (15330) |  |
| Depreciation and amortization | (44086) |  |
| Change in fair value of derivative asset | (15480) |  |
| Unrealized gains on fair value of bitcoin | 17143 |  |
| Realized gains on sale of bitcoin | (3639) |  |
| Equity in losses of equity method investees | (1701) |  |
| Other segment items<sup>(1)</sup> | (978) |  |
| Segment operating loss | (20506) | (20506) |
| Adjustments<sup>(2)</sup> |  | (24737) |
| Operating loss |  | (45243) |
| Interest income |  | 296 |
| Interest expense |  | (1137) |
| Other non-operating items<sup>(3)</sup> |  | 1220 |
| Loss before taxes |  | $(44864) |
| **Three Months Ended June 30, 2024** | **Bitcoin Mining** | **Consolidated** |
| Revenue - bitcoin mining | $36808 | $36808 |
| Costs and operating (expenses) income |  |  |
| Cost of revenue | (14281) |  |
| Depreciation and amortization | (20251) |  |
| Change in fair value of derivative asset | 21980 |  |
| Unrealized gains on fair value of bitcoin | (21178) |  |
| Realized gains on sale of bitcoin | 4869 |  |
| Equity in losses of equity method investees | (577) |  |
| Other segment items<sup>(1)</sup> | 1109 |  |
| Segment operating income | 8479 | 8479 |
| Adjustments<sup>(2)</sup> |  | (24650) |
| Operating loss |  | (16171) |
| Interest income |  | 1053 |
| Interest expense |  | (372) |
| Other non-operating items<sup>(3)</sup> |  | 727 |
| Loss before taxes |  | $(14763) |
| (1) Other segment items included in Bitcoin Mining include Power sales, and Other gains. | (1) Other segment items included in Bitcoin Mining include Power sales, and Other gains. | (1) Other segment items included in Bitcoin Mining include Power sales, and Other gains. |
| (2) Other operating items included in adjustments include Compensation and benefits, and General and administrative. | (2) Other operating items included in adjustments include Compensation and benefits, and General and administrative. | (2) Other operating items included in adjustments include Compensation and benefits, and General and administrative. |
| (3) Other non-operating items include Change in fair value of warrant liability, and Other expense. | (3) Other non-operating items include Change in fair value of warrant liability, and Other expense. | (3) Other non-operating items include Change in fair value of warrant liability, and Other expense. |

---

The Company's revenues, significant expenses, operating income, and net income by segment for the six months ended June 30, 2025 and 2024 is summarized in the following table (in thousands):

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

---

| | | |
|:---|:---|:---|
| **Six Months Ended June 30, 2025** | | |
| | **Bitcoin Mining** | **Consolidated** |
| Revenue - bitcoin mining | $92524 | $92524 |
| Costs and operating (expenses) income |  |  |
| Cost of revenue | (30224) |  |
| Depreciation and amortization | (87553) |  |
| Change in fair value of derivative asset | (8150) |  |
| Unrealized gains on fair value of bitcoin | (3035) |  |
| Realized gains on sale of bitcoin | 8557 |  |
| Equity in losses of equity method investees | (6993) |  |
| Other segment items<sup>(1)</sup> | (466) |  |
| Segment operating income | (35340) | (35340) |
| Adjustments<sup>(2)</sup> |  | (47991) |
| Operating loss |  | (83331) |
| Interest income |  | 486 |
| Interest expense |  | (1914) |
| Other non-operating items<sup>(3)</sup> |  | 1064 |
| Loss before taxes |  | $(83695) |
| **Six Months Ended June 30, 2024** |  |  |
|  | **Bitcoin Mining** | **Consolidated** |
| Revenue - bitcoin mining | $84945 | $84945 |
| Costs and operating (expenses) income |  |  |
| Cost of revenue | (29101) |  |
| Depreciation and amortization | (37495) |  |
| Change in fair value of derivative asset | 29339 |  |
| Unrealized gains on fair value of bitcoin | 19378 |  |
| Realized gains on sale of bitcoin | 4869 |  |
| Equity in losses of equity method investees | 161 |  |
| Other segment items<sup>(1)</sup> | 2282 |  |
| Segment operating income | 74378 | 74378 |
| Adjustments<sup>(2)</sup> |  | (43763) |
| Operating loss |  | 30615 |
| Interest income |  | 1839 |
| Interest expense |  | (772) |
| Other non-operating items<sup>(3)</sup> |  | (981) |
| Income before taxes |  | $30701 |
| (1) Other segment items included in Bitcoin Mining include Power sales, and Other gains. | (1) Other segment items included in Bitcoin Mining include Power sales, and Other gains. | (1) Other segment items included in Bitcoin Mining include Power sales, and Other gains. |
| (2) Other operating items included in adjustments include Compensation and benefits, and General and administrative. | (2) Other operating items included in adjustments include Compensation and benefits, and General and administrative. | (2) Other operating items included in adjustments include Compensation and benefits, and General and administrative. |
| (3) Other non-operating items include Change in fair value of warrant liability, and Other expense. | (3) Other non-operating items include Change in fair value of warrant liability, and Other expense. | (3) Other non-operating items include Change in fair value of warrant liability, and Other expense. |

---

**NOTE 20. INCOME TAXES**

The determination of income tax expense in the unaudited condensed consolidated statements of operations is based upon the estimated effective tax rate for the year, adjusted for the impact of any discrete items which are accounted for in the

------

**CIPHER MINING INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

(unaudited)

period in which they occur. The Company recorded an income tax expense of approximately 2.0% of loss before taxes for the three months ended June 30, 2025 and 3.6% of loss before taxes for the three months ended June 30, 2024, and 1.3% of loss before taxes for the six months ended June 30, 2025 and 19.8% of income before taxes for the six months ended June 30, 2024.

**NOTE 21. SUBSEQUENT EVENTS**

The Company has evaluated subsequent events for adjustment to or disclosure in its condensed consolidated financial statements through the date of this report. No subsequent events have been identified other than those disclosed in these condensed consolidated financial statements except for the following:

On July 4, 2025, President Donald Trump signed the "One Big Beautiful Bill Act" (OBBBA) into law, which is considered the enactment date under U.S. GAAP. Key corporate tax provisions include the restoration of 100% bonus depreciation, immediate expensing for domestic research and experimental expenditures, changes to Section 163(j) interest limitations, updates to GILTI and FDII rules, and expanded Section 162(m) aggregation requirements. In accordance with ASC 740, the effects of the new tax law will be recognized in the period of enactment. The Company is currently evaluating the impact of the OBBBA, and an estimate of the financial effect is not yet available.

------

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

*You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report. This discussion contains forward-looking statements based upon current plans, expectations and beliefs involving risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in Part II, Item 1A, "Risk Factors" and other factors set forth in other parts of this Quarterly Report.*

*Unless the context otherwise requires, references in this Quarterly Report to the "Company," "Cipher," "Cipher Mining," "we," "us" or "our" refers to Cipher Mining Inc. and its consolidated subsidiaries, unless otherwise indicated.*

**Overview**

We develop and operate industrial-scale data centers. Our active portfolio and development pipeline is expected to consist of more than 3.0 GW of capacity across 11 sites. We currently operate two wholly-owned bitcoin mining data centers, a 207 MW site located in Odessa, Texas that draws fixed priced power from a power purchase agreement with its electricity provider (the "Odessa Facility"), and a 300 MW data center in Wink, Texas, of which 150 MW is operational as a bitcoin mining data center, that draws power from the power grid (the "Black Pearl Facility"), have equity investments in three partially-owned 40 MW bitcoin mining data centers, and have a pipeline of approximately 2.6 GW of potential capacity across seven sites in Texas. As we develop the sites in our pipeline and source future sites, locations and partnerships, we evaluate their suitability for either bitcoin mining or high-performance computing ("HPC").

Our current intention is to continue expanding our business by developing and operating industrial-scale data centers for bitcoin mining and HPC, expanding capacity at our current data centers, continuing to execute our treasury management strategy and entering into other strategic arrangements, such as joint ventures, data center hosting and leasing agreements, or software licensing arrangements. We aim to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to HPC companies.

As of July 31, 2025, the hashrate capacity of the Odessa Facility was approximately 11.3 EH/s and the hashrate capacity of the Black Pearl Facility was approximately 6.9 EH/s. Our joint ventures, in which we have a 49% equity interest, have a combined hashrate capacity of approximately 4.4 EH/s.

**Recent Developments**

On May 16, 2025, we amended our Future Sales and Purchase Agreement with Bitmain to reduce the total amount due to Bitmain, accelerate payments thereunder, and provide us with call options to purchase bitcoin. Refer to Note 6 - Deposits on equipment in the notes to our condensed consolidated financial statements included in this Quarterly Report, for further information. By prepaying those obligations that would come due between May and November, we reduced the cost of miners purchased for Phase I of the Black Pearl data center, and offset a portion of expected tariffs.

On May 22, 2025, we issued an aggregate principal amount of $172.5 million of 1.75% Convertible Senior Notes due 2030 (the "2030 Notes"). Refer to Note 14 - Debt in the notes to our Consolidated Financial Statements included in this Quarterly Report, for further information. With the net proceeds of the 2030 Notes, we completed Phase 1 of the Black Pearl Facility.

In June 2025, we energized and commenced bitcoin mining operations at Phase I of the Black Pearl facility. As of July 31, 2025, the facility is delivering approximately 6.9 EH/s of self-mining capacity.

On July 22, 2025, we terminated the Board Observer Agreement with Bitfury Top HoldCo B.V. and Bitfury Holding B.V.

**Factors Affecting Our Results of Operations**

There have been no material changes to the "Factors Affecting Our Results of Operations" in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our 2024 Form 10-K. Our financial position and results of operations depend to a significant extent on those factors.

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**Summary of Bitcoin Inventory**

The following table presents information about our Bitcoin inventory for the six months ended June 30, 2025, including bitcoin production and sales of bitcoin (dollar amounts in thousands):

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| | | |
|:---|:---|:---|
| | **Quantity**  | **Amounts**  |
| **Opening balance** | 994 | $92651 |
| &nbsp;&nbsp;&nbsp;Bitcoin received from equity investees | 145 | 13857 |
| &nbsp;&nbsp;&nbsp;Bitcoin received from mining activities | 696 | 67270 |
| &nbsp;&nbsp;&nbsp;Bitcoin received from loan | 180 | 16551 |
| &nbsp;&nbsp;&nbsp;Bitcoin loan payments | (2) | (140) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of bitcoin | (1312) | (121352) |
| &nbsp;&nbsp;&nbsp;Realized gains on sale of bitcoin |  | 8557 |
| &nbsp;&nbsp;&nbsp;Unrealized (losses) gains on bitcoin |  | (3035) |
| &nbsp;&nbsp;&nbsp;Realized loss on bitcoin transferred to collateral, net |  | (3195) |
| &nbsp;&nbsp;&nbsp;Bitcoin transferred from collateral, net | 345 | $40925 |
| **Ending balance** | 1046 | $112089 |

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**Components of our Results of Operations**

For a description of the components of our results of operations, refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our 2024 Form 10-K.

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**Results of Operations**

The following table sets forth our results of operations for the periods indicated (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue - bitcoin mining | $43565 | $36808 | $92524 | $84945 |
| Costs and operating (expenses) income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenue | (15330) | (14281) | (30224) | (29101) |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | (15659) | (16285) | (29962) | (29321) |
| &nbsp;&nbsp;&nbsp;General and administrative | (9078) | (8365) | (18029) | (14442) |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | (44086) | (20251) | (87553) | (37495) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative asset | (15480) | 21980 | (8150) | 29339 |
| &nbsp;&nbsp;&nbsp;Power sales | 1376 | 1109 | 2367 | 2282 |
| &nbsp;&nbsp;&nbsp;Equity in (losses) income of equity investees | (1701) | (577) | (6993) | 161 |
| &nbsp;&nbsp;&nbsp;Unrealized gains (losses) on fair value of bitcoin | 17143 | (21178) | (3035) | 19378 |
| &nbsp;&nbsp;&nbsp;Realized (losses) gains on sale of bitcoin | (3639) | 4869 | 8557 | 4869 |
| &nbsp;&nbsp;&nbsp;Other operating losses | (2354) | - | (2833) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and operating expenses | (88808) | (52979) | (175855) | (54330) |
| Operating (loss) income | (45243) | (16171) | (83331) | 30615 |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 296 | 1053 | 486 | 1839 |
| &nbsp;&nbsp;&nbsp;Interest expense | (1137) | (372) | (1914) | (772) |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | - | - | - | 250 |
| &nbsp;&nbsp;&nbsp;Other income (expense) | 1220 | 727 | 1064 | (1231) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | 379 | 1408 | (364) | 86 |
| (Loss) income before taxes | (44864) | (14763) | (83695) | 30701 |
| Current income tax expense | (1145) | (335) | (1924) | (721) |
| Deferred income tax benefit (expense) | 228 | (193) | 863 | (5371) |
| &nbsp;&nbsp;Total income tax expense | (917) | (528) | (1061) | (6092) |
| Net (loss) income | $(45781) | $(15291) | $(84756) | $24609 |

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***Comparative Results for the Three Months Ended June 30, 2025 and 2024***

*Revenue*

Revenue for the three months ended June 30, 2025 was $43.6 million compared to $36.8 million for the three months ended June 30, 2024 and was generated from bitcoin mining operations at the Odessa and Black Pearl Facilities. The increase year over year was primarily driven by higher bitcoin prices in the current quarter compared to the prior year quarter, partially offset by less bitcoin mined as a result of the halving in April of 2024, which reduced the bitcoin received for mining a block from 6.25 bitcoin to 3.125 bitcoin.

*Cost of revenue*

Cost of revenue for the three months ended June 30, 2025 was $15.3 million, compared with $14.3 million for the three months ended June 30, 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 sales fluctuate each period based on power and bitcoin prices which are both volatile.

*Equity in losses of equity investees*

Equity in losses of equity investees totaled $1.7 million for the three months ended June 30, 2025 compared to losses of $0.6 million for the three months ended June 30, 2024. Equity in losses of equity investees consists of our 49% 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.

*Unrealized (losses) gains on fair value of bitcoin*

Unrealized gains on fair value of bitcoin totaled $17.1 million for the three months ended June 30, 2025, compared to losses of $21.2 million for the three 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 (losses) gains on sale of bitcoin*

Realized losses on sale of bitcoin totaled $3.6 million for the three months ended June 30, 2025 compared to gains of $4.9 million for the three months ended June 30, 2024. Realized gains and losses on sale of bitcoin is a result of selling bitcoin at prices different from the cost basis.

*Other income (expense)*

Other income totaled $0.4 million for the three months ended June 30, 2025, compared to Other expense of $1.4 million for three months ended June 30, 2024. The decrease is primarily related to interest expense incurred from the Coinbase Loan Facility and the 2030 Convertible Note issuance in the current year.

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*Benefit for income taxes*

For the three months ended June 30, 2025, we recorded a benefit for income taxes of $0.9 million primarily driven by net losses in the current period. For the three months ended June 30, 2024, we recorded a benefit for income taxes of $0.5 million.

***Comparative Results for the Six Months Ended June 30, 2025 and 2024***

*Revenue*

Revenue for the six months ended June 30, 2025 was $92.5 million, compared to $84.9 million for the six months ended June 30, 2024, and was generated from bitcoin mining operations at the Odessa and Black Pearl Facilities. The increase year over year was primarily driven by an increase in the average bitcoin price in the current year, partially offset by a decrease in the amount of bitcoin mined as a result of the bitcoin halving in April 2024.

*Cost of revenue*

Cost of revenue for the six months ended June 30, 2025 was $30.2 million, compared with $29.1 million for the six months ended June 30, 2024, and consisted primarily of power costs at the Odessa Facility. The increase is primarily due to power draw at the Black Pearl and Barber Lake Facilities .

*Compensation and benefits*

Compensation and benefits for the six months ended June 30, 2025 was $30.0 million, compared to $29.3 million for the six months ended June 30, 2024. The increase was primarily due to an increase in headcount year-over-year.

*General and administrative*

General and administrative expenses for the six months ended June 30, 2025 was $18.0 million, an increase of $3.6 million compared to $14.4 million for the six months ended June 30, 2024. The increase was primarily driven by an increase in legal fees related to strategic initiatives.

*Depreciation and amortization*

Depreciation and amortization for the six months ended June 30, 2025 was $87.6 million, an increase of $50.1 million compared to Depreciation and amortization of $37.5 million for the six months ended June 30, 2024. The increase was primarily due to increased miners, and mining equipment at the Odessa Facility as a result of the Odessa fleet upgrade in the fourth quarter of 2024, as well as the change in the estimated useful life of our miners from five years to three years as of June 1, 2024.

*Change in fair value of derivative asset*

Change in fair value of derivative asset was a $8.2 million decrease for the six 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 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 bitcoin above our cost basis.

*Other expense (income)*

Other expense totaled $0.4 million for the six months ended June 30, 2025, compared to $0.1 million of Other income for the six months ended June 30, 2024. The increase of Other expense in the current year is driven primarily from an increase in interest expense related to the Coinbase Loan Facility and the 2030 Convertible Notes.

*Income tax benefit (expense)*

For the six months ended June 30, 2025, we recorded a provision for income taxes of $1.1 million as a result of projected income for the current year in the jurisdictions which we operate. For the six months ended June 30, 2024, we recorded a provision for income taxes of $6.1 million.

**Liquidity and Capital Resources**

We had cash used in operations of $103.5 million for the six months ended June 30, 2025. As of June 30, 2025, we had cash and cash equivalents of $62.7 million, total stockholders' equity of $748.9 million and an accumulated deficit of $266.2 million. We fund operations primarily through a combination of at-the-market stock issuances, short-term and long-term financing arrangements, and bitcoin sales.

We have established an at-the-market sales agreement with Cantor Fitzgerald & Co., Canaccord Genuity LLC, Needham & Company, LLC, Compass Point Research & Trading, LLC, Keefe, Bruyette & Woods, Inc., Virtu Americas LLC, and BTIG, LLC (each, an "Agent" and, together, the "Agents"), pursuant to which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $725.7 million. For the three months ended June 30, 2025, we received net proceeds on sales of 14.2 million shares of common stock under the Amended and Restated Sales Agreement of approximately $51.5 million (net of commissions and expenses) at an average net selling price of $3.63 per share. For more information on our at-the-market sales agreement and our at-the-market offerings, see *Note 15. Stockholders' Equity*.

We have a master loan agreement with Coinbase Credit, Inc., as lender, and Coinbase, Inc., as lending service provider. Pursuant to the master loan agreement, we currently have a secured line of credit up to $25.0 million (the "Coinbase Overnight Credit Facility"). We will not incur commitment fees for unused portions of the Coinbase Overnight Credit Facility. The borrowing rate on amounts drawn against the Coinbase Overnight Credit Facility is determined on the basis of the Federal Funds Target Rate - Upper Bound, plus 2.5%, calculated daily based on a 365-day year and payable monthly for the duration of the loan. Borrowings under the Coinbase Overnight Credit Facility are available on demand, open term, and collateralized by bitcoin transferred to the lending service provider's platform. As of June 30, 2025 we had nothing drawn on the Coinbase Overnight Credit Facility. Additionally, we have a term loan facility with Coinbase with a limit of $35.0 million and maximum period of one year (the "Term Loan Facility"). As of June 30, 2025, we were in compliance with the covenants under the Coinbase Overnight Credit Facility.

We enter into agreements with Luxor Technology Corporation ("Luxor") when needed to borrow bitcoin for short-term periods, which we are able to use as a source of short-term financing.

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On May 22, 2025, we issued $172.5 million principal amount of convertible notes due in 2030 with an interest rate of 1.75% (the "2030 Convertible Notes"). The 2030 Convertible Notes are senior, unsecured obligations with interest due semiannually on May 15 and November 15 each year beginning on November 15, 2025. For more information on our 2030 Convertible Notes, see *Note 14. Debt*.

Management believes that our existing financial resources, combined with projected cash and bitcoin inflows from our data centers, our intent and ability to sell bitcoin received or earned, and our intent and ability to sell common stock through at-the-market offerings will be sufficient to enable us to meet our operating and capital requirements for at least 12 months from the date the condensed consolidated financial statements included in this Quarterly Report are issued and the foreseeable future.

**Cash Flows** 

The following table summarizes our sources and uses of cash for the periods indicated (in thousands):

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| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| Net cash used in operating activities | $(103455) | $(51988) |
| Net cash used in investing activities | (110470) | (62313) |
| Net cash provided by financing activities | 271044 | 150753 |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents | $57119 | $36452 |

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***Operating Activities***

Net cash used in operating activities increased by $51.5 million to $103.5 million for the six months ended June 30, 2025 from $52.0 million for the six months ended June 30, 2024. We incurred a net loss of $84.8 million for the six months ended June 30, 2025, compared to net income of $24.6 million for the six months ended June 30, 2024, representing a decrease of $109.4 million. Cash flows used in operating activities was impacted by a $96.7 million increase in non-cash items, primarily driven a $37.5 million increase in the fair value of derivative asset, an $18.7 million increase in gains on the fair value of bitcoin, and a $50.0 million increase in depreciation. Additionally, changes in assets and liabilities resulted in an increase in cash used of $38.8 million between the six months ended June 30, 2025 and 2024.

***Investing Activities***

Cash used in investing activities increased by $48.2 million to $110.5 million of net cash used in investing activities for the six months ended June 30, 2025 compared to $62.3 million of net cash used in investing activities for the six months ended June 30, 2024. This change primarily related to a $126.6 million increase in deposits related to new miner purchases, and a $40.1 million increase in purchases of Property and equipment related to building out the Black Pearl facility, partially offset by an increase of $111.0 million of proceeds from sale of Bitcoin, and a $7.6 million decrease in contributions to equity investees related to our joint ventures.

***Financing Activities***

Cash flows provided by financing activities increased by $120.3 million to $271.0 million net cash provided by financing activities for the six months ended June 30, 2025 from $150.8 million net cash provided by financing activities for the six months ended June 30, 2024. This change was primarily driven by a $50.0 million increase in proceeds from treasury stock reissued for PIPE investment and a $167.1 million increase in proceeds from issuance of convertible notes, net of issuance costs, partially offset by a $76.5 million decrease in proceeds from the issuance of common stock during the six months ended June 30, 2025.

***Contractual Obligations and Other Commitments***

On December 17, 2021, we entered into a lease agreement for office space, amended in the second quarter of 2024, with a term through May 2029. Monthly rent payments associated with the amended lease are approximately $0.2 million.

We also entered into a series of agreements with affiliates of Luminant ET Services Company LLC ("Luminant"), including the Lease Agreement dated June 29, 2021, with amendment and restatement on July 9, 2021 (as amended and

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restated, the "Luminant Lease Agreement"). The Luminant Lease Agreement leases a plot of land to us where our data center, ancillary infrastructure and electrical system (the "Interconnection Electrical Facilities" or "substation") have been set up for our Odessa Facility. We entered into the Luminant Lease Agreement and the Luminant Purchase and Sale Agreement to build the infrastructure necessary to support our planned operations. Management determined that the Luminant Lease Agreement and the Luminant Purchase and Sale Agreement should be combined for accounting purposes under ASC 842 (collectively, the "Combined Luminant Lease Agreement") and that amounts exchanged under the combined contract should be allocated to the various components of the overall transaction based on relative fair values.

Our management determined that the Combined Luminant Lease Agreement contains two lease components; and the components should be accounted for together as a single lease component, because the effect of accounting for the land lease separately would be insignificant.

The Combined Luminant Lease Agreement commenced on November 22, 2022 and has an initial term of five years, with renewal provisions that are aligned with the Luminant Power Agreement. Financing for use of the land and substation is provided by Luminant affiliates. Despite lease commencement in November 2022, we had not been required by Luminant to make any lease payments for the substation prior to July 2023, therefore we accrued amounts due under the Combined Luminant Lease Agreement in accrued expenses and other current liabilities on its consolidated balance sheet.

On August 23, 2023, we entered into a second amendment of the Luminant Lease Agreement, the terms of which included an amended payment schedule, reflecting monthly installments of principal and interest totaling $19.7 million on an undiscounted basis, due over the remaining four-year period starting in July 2023. This amendment did not have a material impact on our condensed consolidated financial statements.

At the end of the lease term for the Interconnection Electrical Facilities, the substation will be sold back to Luminant's affiliate, Vistra Operations Company, LLC at a price to be determined based upon bids obtained in the secondary market.

**Non-GAAP Financial Measures**

We are providing supplemental financial measures for Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share - diluted, in each case that exclude the impact of (i) the non-cash change in fair value of derivative asset, (ii) share-based compensation expense, (iii) depreciation and amortization, (iv) deferred income tax expense, (v) nonrecurring gains and losses and (vi) the non-cash change in fair value of warrant liability. These supplemental financial measures are not measurements of financial performance under accounting principles generally accepted in the United States ("GAAP") and, as a result, these supplemental financial measures may not be comparable to similarly titled measures of other companies. Management uses these non-GAAP financial measures internally to help understand, manage, and evaluate our business performance and to help make operating decisions. We believe the use of these non-GAAP financial measures can also facilitate comparison of our operating results to those of our competitors by excluding certain items that vary in our industry based on company policy.

Non-GAAP financial measures are subject to material limitations as they are not in accordance with, or a substitute for, measurements prepared in accordance with GAAP. For example, we expect that share-based compensation expense, which is excluded from the non-GAAP financial measure, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers and directors. Similarly, we expect that depreciation and amortization will continue to be a recurring expense over the term of the useful life of the related assets. Our non-GAAP financial measures are not meant to be considered in isolation and should be read only in conjunction with our condensed consolidated financial statements included elsewhere in this Quarterly Report, which have been prepared in accordance with GAAP. We rely primarily on such condensed consolidated financial statements to understand, manage and evaluate our business performance and use the non-GAAP financial measures only supplementally.

The following is a reconciliation of our Adjusted Earnings to the most directly comparable GAAP measure for the periods indicated (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Reconciliation of Adjusted Earnings:** |  |  |  |  |
| Net (loss) income | $(45781) | $(15291) | $(84756) | $24609 |
| Change in fair value of derivative asset | 15480 | (21980) | 8150 | (29339) |
| Share-based compensation expense | 10493 | 13337 | 19625 | 21654 |
| Depreciation and amortization | 44086 | 20251 | 87553 | 37495 |
| Deferred income tax (benefit) expense | (228) | 193 | (863) | 5371 |
| Other losses - nonrecurring | 6299 |  | 6778 |  |
| Change in fair value of warrant liability |  |  |  | (250) |
| **Adjusted earnings (loss)** | $30349 | $(3490) | $36487 | $59540 |

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The following is a reconciliation of our Adjusted Earnings (loss) per share - diluted to the most directly comparable GAAP measure for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Reconciliation of Adjusted Earnings per share - diluted:** |  |  |  |  |
| Net loss per share - diluted | $(0.12) | $(0.05) | $(0.23) | $0.08 |
| Change in fair value of derivative asset per diluted share | 0.03 | (0.06) | 0.02 | (0.10) |
| Share-based compensation expense per diluted share | 0.03 | 0.04 | 0.05 | 0.07 |
| Depreciation and amortization per diluted share | 0.12 | 0.06 | 0.24 | 0.12 |
| Deferred income tax (benefit) expense per diluted share |  |  |  | 0.02 |
| Other losses - nonrecurring per diluted share | 0.02 |  | 0.02 |  |
| Change in fair value of warrant liability per diluted share |  |  |  |  |
| **Adjusted earnings (loss) per diluted share** | $0.08 | $(0.01) | $0.10 | $0.19 |

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**Critical Accounting Policies, and Use of Estimates**

For a description of our policies regarding our critical accounting estimates, see "Critical Accounting Policies and Estimates" of Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Form 10-K. During the three months ended June 30, 2025, there were no significant changes in our critical accounting policies and estimates or the application or the results of the application of those policies to our unaudited condensed consolidated financial statements from those previously disclosed in our 2024 Form 10-K.

**Recent Accounting Pronouncements**

Information regarding recent accounting pronouncements applicable to us, adopted and not yet adopted as of the date of this report, is included in Note 2 to our unaudited condensed consolidated financial statements located in "Part I - Financial Information, Item 1. Financial Statements" in this Quarterly Report.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

The following discussion of our market risks involves forward-looking statements. Actual results could differ materially from those projected in our forward-looking statements. For more information regarding the forward-looking statements used in this section and elsewhere in this Quarterly Report, see the Cautionary Note Regarding Forward-Looking Statements at the forepart of this Quarterly Report.

Our primary market risks are described below. We use various strategies to manage these risks; however, they may still from time to time impact our condensed consolidated financial statements.

*Bitcoin Price Risk*

We hold bitcoin on our inventory at fair value, and as such we are exposed to the impact of the change in bitcoin price. As of June 30, 2025, we had 1,046 bitcoin in inventory. A 10% decrease in the price of bitcoin would result in an estimated $11.2 million increase in Net loss for the six months ended June 30, 2025.

*Power Price Risk*

The estimated fair value of our Derivative asset related to our power purchase agreement is derived from Level 2 and Level 3 inputs. Specifically, the discounted cash flow estimation models contain quoted spot and forward prices for electricity. A 10% decrease in power prices would result in an estimated $14.8 million decrease in the estimated fair value of the Derivative asset and increase in Net loss for the six months ended June 30, 2025.

**Item 4. Controls and Procedures.**

**Limitations on Effectiveness of Controls and Procedures**

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

**Evaluation of Disclosure Controls and Procedures**

We conducted an evaluation of the effectiveness of our "disclosure controls and procedures", as defined by Rules 13a-15(e) and 15d-15(e) of the Exchange Act, as of June 30, 2025, the end of the period covered by this Quarterly Report. This evaluation was done under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, our disclosure controls and procedures were not effective at the reasonable assurance level as of June 30, 2025.

**Remediation of Material Weakness**

As noted in the 2024 Form 10-K, during management's assessment of internal controls over financial reporting, a material weakness was identified related to certain Information Technology General Controls ("ITGCs") over change management controls.

As management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, we understand the importance of developing a resolution plan aligned with management and overseen by the Audit Committee of our Board of Directors.

Since the material weakness related to certain ITGCs over change management controls and lack of related compensating automated process-level and manual controls was identified, management began implementing and has continued to implement and refine measures designed to ensure that control deficiencies contributing to the material weakness are remediated, such that these controls are designed, implemented, and operating effectively. During the three months ended June 30, 2025, management continued implementing its enhanced program change management controls for certain

------

systems impacting the Company's processes around revenue recognition and design of manual key reconciliation processes. The Company continued to make progress but work still remains to ensure reliability of such controls. Our plan continues to include the following, and management will continue to assess additional opportunities for remediation on an ongoing basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continue advancing our remediation efforts by devoting resources throughout 2025 to key areas of financial reporting and information technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maintain our engagement with advisory firms to support the evaluation and enhancement of the Company's controls related to the material weakness described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Further implement and refine processes and controls and engage external resources as needed to ensure that controls are appropriately designed, implemented, and operating effectively.

We recognize that the material weakness in our internal control over financial reporting will not be considered remediated until the remediated controls operate for a sufficient period of time and can be tested and concluded by management to be designed and operating effectively. Because our remediation efforts involve our outsourced service providers, we cannot provide any assurance that these remediation efforts will be successful or that our internal control over financial reporting will be effective as a result of these efforts.

We continue to evaluate and work to improve our internal control over financial reporting related to the identified material weakness and management may determine to take additional measures to address control deficiencies or determine to modify the remediation plan described above. In addition, we report the progress and status of the above remediation efforts to the Audit Committee on a periodic basis.

**Changes in Internal Control over Financial Reporting**

Other than the remediation efforts described above, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings.**

We are not a party to any material pending legal proceedings. From time to time, we may be subject to legal proceedings and claims arising in the ordinary course of business. The outcome of any such claims or proceedings, regardless of the merits, is inherently uncertain. There have been no material changes to such proceedings previously disclosed in our 2024 Form 10-K.

**Item 1A. Risk Factors.** 

Our business, financial condition and operating results can be affected by a number of factors, whether currently known or unknown, including but not limited to the risk factors as previously disclosed in Part I, Item 1A, "Risk Factors" of our 2024 Form 10-K, which is incorporated herein by reference. Other than the additional risk factors herein, there have been no material changes to the risk factors previously disclosed in our 2024 Form 10-K.

***Our indebtedness and liabilities could limit the cash flow available for our operations, expose us to risks that could adversely affect our business, financial condition and results of operations and impair our ability to satisfy our obligations under the 2030 Notes.***

We incurred $172.5 million principal amount of additional indebtedness as a result of the 2030 Notes offering completed in May 2025. We may also incur additional indebtedness to meet future financing needs. Our indebtedness could have significant negative consequences for our security holders and our business, results of operations and financial condition by, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increasing our vulnerability to adverse economic and industry conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting our ability to obtain additional financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requiring the dedication of a substantial portion of our cash flow from operations to service our indebtedness, which will reduce the amount of cash available for other purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting our flexibility to plan for, or react to, changes in our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diluting the interests of our existing stockholders as a result of issuing shares of our common stock upon conversion of the 2030 Notes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• placing us at a possible competitive disadvantage with competitors that are less leveraged than us or have better access to capital.

Our business may not generate sufficient funds, and we may otherwise be unable to maintain sufficient cash reserves, to pay amounts due under our indebtedness, including the 2030 Notes, and our cash needs may increase in the future. In addition, future indebtedness that we may incur may contain financial and other restrictive covenants that limit our ability to operate our business, raise capital or make payments under our other indebtedness. If we fail to comply with these covenants or to make payments under our indebtedness when due, then we would be in default under that indebtedness, which could, in turn, result in that and our other indebtedness becoming immediately payable in full.

***We may be unable to raise the funds necessary to repurchase the 2030 Notes for cash following a fundamental change or on a specified optional repurchase date or to pay any cash amounts due upon maturity or conversion of the 2030 Notes, and our other indebtedness may limit our ability to repurchase the 2030 Notes or to pay any cash amounts due upon their maturity or conversion.***

Holders of the 2030 Notes may, subject to limited exceptions, require us to repurchase their 2030 Notes on May 15, 2028, and following a fundamental change, at a cash repurchase price generally equal to the principal amount of the 2030 Notes to be repurchased, plus accrued and unpaid interest, if any. Upon maturity of the 2030 Notes, we must pay their principal amount and accrued and unpaid interest in cash, unless they have been previously repurchased, redeemed or converted. In addition, upon conversion, we will satisfy part or all of our conversion obligation in cash unless we elect to settle conversions solely in shares of our common stock. We may not have enough available cash or be able to obtain financing at the time we are required to repurchase the 2030 Notes or pay any cash amounts due upon their maturity or conversion. In

------

addition, applicable law, regulatory authorities and the agreements that we may have in the future governing our other indebtedness may restrict our ability to repurchase the 2030 Notes or to pay any cash amounts due upon their maturity or conversion. Our failure to repurchase 2030 Notes or to pay any cash amounts due upon their maturity or conversion when required will constitute a default under the indenture. A default under the indenture or the fundamental change itself could also lead to a default under agreements governing our other indebtedness, which may result in that other indebtedness becoming immediately payable in full. We may not have sufficient funds to satisfy all amounts due under the other indebtedness and the 2030 Notes.

***Provisions in the 2030 Notes indenture could delay or prevent an otherwise beneficial takeover of us.***

Certain provisions in the 2030 Notes and related indenture could make a third-party attempt to acquire us more difficult or expensive. For example, if a takeover constitutes a fundamental change, then noteholders will have the right to require us to repurchase their 2030 Notes for cash. In addition, if a takeover constitutes a make-whole fundamental change, then we may be required to temporarily increase the conversion rate. In either case, and in other cases, our obligations under the 2030 Notes and the indenture could increase the cost of acquiring us or otherwise discourage a third party from acquiring us or removing incumbent management, including in a transaction that noteholders or holders of our common stock may view as favorable.

***The conditional conversion feature of the 2030 Notes, if triggered, may adversely affect our financial condition and operating results.***

In the event the conditional conversion feature of the 2030 Notes is triggered, holders of such notes will be entitled to convert the 2030 Notes at any time during specified periods at their option. If one or more holders elect to convert their 2030 Notes, we may elect to settle all or a portion of our conversion obligation through the payment of cash, which could adversely affect our liquidity. In addition, even if holders do not elect to convert their 2030 Notes, we could be required under applicable accounting rules to reclassify all or a portion of the outstanding principal of the 2030 Notes as a current rather than long-term liability, which would result in a material reduction of our net working capital.

***The accounting method for the 2030 Notes could adversely affect our reported financial condition and results.***

The accounting method for the 2030 may adversely affect our reported earnings and financial condition.

The issuance costs for the 2030 Notes are treated as a debt discount for accounting purposes and will be amortized into interest expense over the term of the 2030 Notes. As a result of this amortization, the interest expense that we expect to recognize for the 2030 Notes for accounting purposes will be greater than the cash interest payments we will pay on the 2030 Notes, which will result in lower reported income.

Furthermore, if any of the conditions to the convertibility of the 2030 Notes is satisfied, then we may be required under applicable accounting standards to reclassify the liability carrying value of the 2030 Notes as a current, rather than a long-term, liability. This reclassification could be required even if no investors convert their 2030 Notes and could materially reduce our reported working capital.

***The issuance of shares of our common stock upon conversion of the 2030 Notes will dilute the ownership interests of our stockholders and could depress the trading price of our common stock.***

Upon conversion of the 2030 Notes being offered in the 2030 Notes offering, we will satisfy part or all of our conversion obligations in shares of our common stock, unless we elect to settle conversions solely in cash. The issuance of shares of our common stock upon conversion of the 2030 Notes will dilute the ownership interests of our stockholders, which could depress the trading price of our common stock. In addition, the market's expectation that conversions may occur could depress the trading price of our common stock even in the absence of actual conversions. Moreover, the expectation of conversions could encourage the short selling of our common stock, which could place further downward pressure on the trading price of our common stock.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

None.

------

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Disclosure in lieu of reporting on a Current Report on Form 8-K.

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Material changes to the procedures by which security holders may recommend nominees to the board of directors.

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Insider trading arrangements and policies.

Our officers and directors from time to time may adopt trading plans to transact in our common stock for a variety of reasons, including tax considerations, investment diversification, or other personal reasons. During the three months ended June 30, 2025, certain of our officers and directors adopted a pre-arranged stock trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended (each such plan, a "Rule 10b5-1 Plan"), as described below. On May 12, 2025, Patrick Kelly, Co-President and Chief Operating Officer, adopted a Rule 10b5-1 Plan that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 414,204 shares of our common stock until August 7, 2026. On June 5, 2025, William Iwaschuk, Co-President, Chief Legal Officer and Corporate Secretary, adopted a Rule 10b5-1 Plan that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 487,956 shares of our common stock until May 8, 2026. No other directors or "officers" (as defined in Section 16a-1(f) of the Securities Exchange Act of 1934, as amended) adopted, terminated, or modified a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K, during the three months ended June 30, 2025.

------

**Item 6. Exhibits.**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Filed/**<br>**Furnished**<br>**Herewith** |
|<br>**Exhibit**<br>**Number** |<br>**Exhibit Description** | **From** | **File No** | **Exhibit** | **Filing**<br>**Date** | **Filed/**<br>**Furnished**<br>**Herewith** |
| 2.1† | <u>[Agreement and Plan of Merger, dated as of March 4, 2021, by and among Good Works Acquisition Corp., Currency Merger Sub, Inc. and Cipher Mining Technologies Inc.](https://www.sec.gov/Archives/edgar/data/0001819989/000121390021013594/ea136931ex2-1_goodworks.htm)</u> | 8-K | 001-39625 | 2.1 | 3/5/21 |  |
| 3.1 | <u>[Second Amended and Restated Certificate of Incorporation of Cipher Mining Inc.](https://www.sec.gov/Archives/edgar/data/1819989/000119312521260900/d212090dex31.htm)</u> | 8-K | 001-39625 | 3.1 | 8/31/21 |  |
| 3.2 | <u>[Amended and Restated Bylaws of Cipher Mining Inc.](https://www.sec.gov/Archives/edgar/data/1819989/000119312521260900/d212090dex32.htm)</u> | 8-K | 001-39625 | 3.2 | 8/31/21 |  |
| 4.1 | <u>[Specimen Warrant Certificate of Good Works Acquisition Corp.](https://www.sec.gov/Archives/edgar/data/1819989/000121390020030737/ea128022ex4-3_goodworks.htm)</u> | S-1/A | 333-248333 | 4.3 | 10/9/20 |  |
| 4.2 | <u>[Warrant Agreement, dated as of October 19, 2020, by and between Continental Stock Transfer & Trust Company and Good Works Acquisition Corp.](https://www.sec.gov/Archives/edgar/data/1819989/000121390020033703/ea128955ex4-1_goodworksacq.htm)</u> | 8-K | 001-39625 | 4.1 | 10/28/20 |  |
| 4.3 | <u>[Indenture, dated May 22, 2025, by and between Cipher Mining Inc. and U.S. Bank Trust Company, National Association, as Trustee.](https://www.sec.gov/Archives/edgar/data/1819989/000119312525125152/d86394dex41.htm)</u> | 8-K | 001-39625 | 4.1 | 5/22/25 |  |
| 4.4 | <u>[First Supplemental Indenture, dated as of May 22, 2025, between Cipher Mining Inc. and U.S. Bank Trust Company, National Association, as Trustee.](https://www.sec.gov/Archives/edgar/data/1819989/000119312525125152/d86394dex42.htm)</u> | 8-K | 001-39625 | 4.2 | 5/22/25 |  |
| 4.5 | <u>[Form of 1.75% Convertible Senior Note Due 2030 (included as Exhibit A to Exhibit 4.](https://www.sec.gov/Archives/edgar/data/1819989/000119312525125152/d86394dex42.htm)[4](https://www.sec.gov/Archives/edgar/data/1819989/000119312525125152/d86394dex42.htm)[).](https://www.sec.gov/Archives/edgar/data/1819989/000119312525125152/d86394dex42.htm)</u> | 8-K | 001-39625 | 4.3 | 5/22/25 |  |
| 10.1† | <u>[Amendment Agreement and Deed of Novation to the Future Sales and Purchase Agreement](exh101bitmain-amendmentand.htm)[, dated May 16, 202](exh101bitmain-amendmentand.htm)[5, by and](exh101bitmain-amendmentand.htm)[among](exh101bitmain-amendmentand.htm)[Cipher Mining Infrastructure LLC, Cipher Black Pearl LLC and](exh101bitmain-amendmentand.htm)[Bitmain Technologies Del](exh101bitmain-amendmentand.htm)[aware Limited](exh101bitmain-amendmentand.htm)</u> |  |  |  |  | \* |
| 31.1 | <u>[Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a).](q2202510-qcifrex311.htm)</u> |  |  |  |  | \* |
| 31.2 | <u>[Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a).](q2202510-qcifrex312.htm)</u> |  |  |  |  | \* |
| 32.1 | <u>[Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350.](q2202510-qcifrex321.htm)</u> |  |  |  |  | \*\* |
| 32.2 | <u>[Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350.](q2202510-qcifrex322.htm)</u> |  |  |  |  | \*\* |
| 101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |  |  |  |  | \* |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |  |  |  |  | \* |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |  |  |  |  | \* |

---

_____________________________________________________

\*Filed herewith.

\*\*Furnished herewith.

†Certain confidential portions (indicated by brackets and asterisks) have been omitted from this exhibit pursuant to Item 601(b)(10)(iv) of Regulation S-K because such information is (i) non-material, (ii) is of the type that the registrant customarily and actually treats as private or confidential and (iii) would be competitively harmful if publicly disclosed.

^ Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant undertakes to provide copies of any of the omitted schedules or exhibits upon request by the Securities and Exchange Commission.

------

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized**.**

---

| | | |
|:---|:---|:---|
| | **CIPHER MINING INC.** | **CIPHER MINING INC.** |
| Date: August 7, 2025 | By: | /s/ Tyler Page |
|  |  | **Tyler Page** |
|  |  | **Chief Executive Officer** |
|  |  | *(Principal Executive Officer)* |
| Date: August 7, 2025 | By: | /s/ Edward Farrell |
|  |  | **Edward Farrell** |
|  |  | **Chief Financial Officer** |
|  |  | *(Principal Financial Officer and Principal Accounting Officer)* |

---

## Exhibit 10.1

![image_0.jpg](image_0.jpg)

**\*\*\* Certain confidential portions (indicated by brackets and asterisks) have been omitted from this exhibit because such information is both (i) non-material and (ii) would be competitively harmful if publicly disclosed.**

**DATED May 16, 2025**

**AMENDMENT AGREEMENT**

**AND**

**DEED OF NOVATION**

**among**

**BITMAIN TECHNOLOGIES DELAWARE LIMITED**<br>**("BITMAIN/Continuing Party")**<br>**and**<br>**CIPHER MINING INFRASTRUCTURE LLC**<br>**("CMI/Outgoing Party")**<br>**and**<br>**CIPHER BLACK PEARL LLC**<br>**("PURCHASER/Incoming Party")**<br>

**relating to** 

**FUTURE SALES AND PURCHASE AGREEMENT<br>(T21, dated December 16, 2023 and amended June 4, 2024 and July 5, 2024)**<br>**and**<br>

**NOTICE OF EXERCISE<br>(S21 XP, dated February 5, 2025)**

V2.0.20250225 (US)

------

BM Ref: SALES-20250506-01&nbsp;&nbsp;&nbsp;&nbsp;

------

![image_1.jpg](image_1.jpg)

**THIS Amendment Agreement and Deed of Novation (**the **"Deed")** is made on May 16, 2025 ("**Effective Date")**.

**AMONG**:

(1)**BITMAIN TECHNOLOGIES DELAWARE LIMITED**, a company incorporated and existing under the laws of the State of Delaware, the United States (File Number: 6096946) ("**BITMAIN/Continuing Party**");

(2)**CIPHER MINING INFRASTRUCTURE LLC**, a company incorporated and existing under the laws of the State of Delaware, the United States (File Number: 93-4777486) ("**CMI/Outgoing Party**"); and

(3)**CIPHER BLACK PEARL LLC**, a company incorporated and existing under the laws of the State of Delaware, the United States (File Number: 93-4486965) ("**Purchaser/Incoming Party**"),

(together the "**Parties**" and each a "**Party**").

**RECITALS**

(A)BITMAIN and CMI have entered into a Future Sales and Purchase Agreement (Model: ANTMINER T21) (BM Ref: T21-XS-00120231216005) dated December 16, 2023 as amended pursuant to a *Supplemental Agreement* (BM Ref: SALES-20240602-01) by and between BITMAIN dated June 4, 2024 and pursuant to a *Supplemental Agreement* (BM Ref: SALES-20240627-01) by and between BITMAIN and CMI dated July 5, 2024 (the "**S21 Pro Agreements**") in respect of HASH Super Computing Servers (Model: S21 Pro) of a reference quantity of 30,364 to be delivered in September and October 2024 (the "**S21 Pro Products**") with an estimated total purchase price of US$134,287,826.40. As of the date hereof, all such S21 Pro Products under the S21 Pro Agreements have been delivered by BITMAIN to CMI.

(B)Under the S21 Pro Agreements (as amended), CMI has options to purchase an additional HASH Super Computing Servers (Model: S21 XP) of a maximum quantity of 32,164 by June 30, 2025, with an estimated total purchase price of US$186,712,020.00. CMI has exercised call options to purchase 32,164 units of S21 XP Products to be delivered between May 2025 and June 2025 (the "**Forward Deliverables**") with a total purchase price of US$186,712,020.00 through issuing a Notice of Exercise dated February 5, 2025 (the "**Notice of Exercise**", together with S21 Pro Agreements, the "**Original Agreements**", a copy of which is attached to this Deed as Schedule II). As of the date hereof, CMI has paid 10% of the purchase price of the Forward Deliverables as the Call Purchase Fee, 10% of the purchase price of the Forward Deliverables as the Down Payment and 30% of the purchase price of the Forward Deliverables as the Interim Payment, being equal to an amount of US$93,356,010 in total. As of the date hereof, none of the Forward Deliverables has been delivered by BITMAIN to CMI.

(C)As of the date hereof, an amount of US$120,213,575.28 of the total purchase price (consisting of 6 payments) under the Original Agreements has not been paid by CMI

------

![image_1.jpg](image_1.jpg)

(the "**Remaining Payments**", and each a "**Remaining Payment**"). The details of the Remaining Payments under the Original Agreements are specified in <u>Schedule I</u> to this Deed.

(D)The Parties wish to amend the Original Agreements regarding (i) the payment arrangements for the Remaining Payments, and (ii) the shipping arrangement for the Forward Deliverables. Unless the context otherwise requires, terms defined in the Original Agreements shall have the same meaning in this Deed.

(E)The Outgoing Party wishes to transfer all of its rights and obligations under the Original Agreements as amended herein to the Incoming Party.

(F)The Outgoing Party shall continue to be liable for any failure by it to perform its obligations under the Original Agreements before the Effective Date and its obligations other than those transferred to the Incoming Party.

(G)The Parties have therefore agreed to novate the Outgoing Party's rights and obligations under the Original Agreements as amended herein to the Incoming Party on the terms of this Deed with effect from the date of this Deed.

**IT IS AGREED AS FOLLOWS**:

1.**Amendment to the Original Agreements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1**Remaining Payments.** The Original Agreements are hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Purchaser shall settle the Remaining Payments in full in a lump-sum payment within fourteen (14) days of the execution of this Deed (the "**Revised Payment Date**"), which, for the avoidance of doubt, amends any agreed payment schedule in the Original Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Purchaser agrees that it shall make a lump-sum payment of the Remaining Payments in full in Bitcoin ("**BTC**") pursuant to this <u>Section I</u> ("**BTC Payment**") to BITMAIN before the Revised Payment Date. The date on which the payment of BTC is completed by the Purchaser shall be referred to as the "**BTC Payment Date**".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The exchange rate between BTC and USD shall be mutually confirmed in writing by both Parties based on the market rate, which refers to the applicable BRR - CME CF Bitcoin Reference Rate (settlement time: CME CF 4PM UK) of Bitcoin on the BTC Payment Date (the "**Reference BTC Price**"). For the purposes of the BTC Payment, the quantity of BTC to be paid by the Purchaser shall be (x) the total amount of the Remaining Payments *divided by* (y) 111.11% of the Reference BTC Price (the "**Total Paid BTC**"). The Reference BTC Price will then be used for the BTC Transaction (as defined hereunder) and all future repurchase of BTC under this Deed.

------

![image_1.jpg](image_1.jpg)

To fulfill the BTC Payment, the Purchaser will purchase the Total Paid BTC from BITMAIN using the amount of USD equivalent to (x) the quantity of the Total Paid BTC *multiplied by* (y) the Reference BTC Price in a lump-sum payment of US$108,192,217.75 (the "**BTC Transaction**"). The Parties acknowledge and agree that BTC purchased by the Purchaser through this BTC Transaction shall only be used for the fulfillment of the Purchaser's BTC Payment obligations under this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Repurchase Option.

On or before August 30, 2025 (the "**First Option Period**"), the Purchaser shall have the right, but not the obligation, to repurchase half of the Total Paid BTC as per the table below (the "**First Option**"). Purchaser may exercise the First Option by paying to BITMAIN an amount in US dollars equal to US$60,106,787.64 (based on 111.11% of the Reference BTC Price) before the end of the First Option Period. Within seven (7) business days following the receipt of such payment, BITMAIN shall transfer one half the Total Paid BTC to an account designated by Purchaser.

On or before November 30, 2025, but only if the Purchaser has exercised the First Option as per the table below (the "**Second Option Period**"), the Purchaser shall have the right, but not the obligation, to repurchase the second half of the Total Paid BTC (the "**Second Option**"). Purchaser may exercise the Second Option by paying to BITMAIN an amount in US dollars equal to US$60,106,787.64 (based on 111.11% of the Reference BTC Price) before the end of the Second Option Period. Within seven (7) business days following the receipt of such payment, BITMAIN shall transfer the second half the Total Paid BTC to an account designated by Purchaser.

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| | | |
|:---|:---|:---|
| **Option Period** | **Amount to be paid to Repurchase the Paid BTC by cash** | **BTC Repurchase Portion** |
| August 30, 2025 | US$60,106,787.64 | 50% of the Total Paid BTC |
| November 30, 2025 | US$60,106,787.64 | 50% of the Total Paid BTC |
| **Total** | US$120,213,575.28 | 100% of the Total Paid BTC |

---

At any time during the First Option Period, the Purchaser has the right to request an early repurchase of the second half of the Total Paid BTC ("**Early Repurchase**"). In such case, the Purchaser must provide an irrevocable written notice to BITMAIN and pay the amount in US dollars

------

![image_1.jpg](image_1.jpg)

equivalent of the second half of the Total Paid BTC as per the table above in a single payment within seven (7) days of such notice.

BITMAIN will send an email reminder to the Purchaser ten (10) days before each Option Period is due, urging timely repurchase and indicating to the Purchaser the deadline for providing BITMAIN with proof of fund transfer.

In the event that Purchaser does not elect to repurchase any Total Paid BTC before the corresponding Option Period, BITMAIN shall have the right, at its sole discretion, to dispose of all the remaining paid BTC held by BITMAIN, and Purchaser shall have no further rights to repurchase any remaining paid BTC and will also have no further payment obligations towards BITMAIN.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2**Forward Deliverables**. In the spirit of cooperation and partnership, BITMAIN shall use its best efforts to deliver to the Purchaser all Forward Deliverables by June 23, 2025 ("**Delivery Date**"), which, for the avoidance of doubt, amends any agreed shipping schedule in the Notice of Exercise, provided that the Purchaser shall have transferred the specific amount needed for BTC Transaction to BITMAIN pursuant to the Section 1.1(c) of this Deed. For the avoidance of doubt, except for the amendment to shipping schedule herein, the provisions of the Original Agreements with respect to shipping arrangements for the Forward Deliverables shall not otherwise be affected by this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3**Confidentiality**. All provisions of and information concerning this Deed and matters pertaining to or derived from the provision of Products pursuant to this Deed between the Parties, whether in oral or written form, or in the form of drawings, computer programs or other, as well as all data derived therefrom ("**Confidential Information**"), shall be deemed to be confidential and, as such, may not be divulged to any unauthorized person. Each Party undertakes and agrees to take all reasonable and practicable steps to ensure and protect the confidentiality of the Confidential Information which cannot be passed, sold, traded, published or disclosed to any unauthorized person. The Parties agree that authorized persons shall include the Purchaser's Affiliates, officers, employees, agents, or professional advisers (legal, financial or other) ("**Authorized Persons**") provided such Authorized Persons are under non-disclosure obligations with the Purchaser. The Parties further agree that Purchaser may disclose this Deed if required by law or by order of any court or tribunal of competent jurisdiction, or by any Government Authority, stock exchange or other regulatory body.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4**Original Agreements**. For the avoidance of doubt, except as set out in this Supplemental Agreement, the provisions of the Original Agreements shall not otherwise be affected by this Deed and shall remain in full force and effect. In

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![image_1.jpg](image_1.jpg)

the event of discrepancies between this Deed and the Original Agreements, the provisions of this Deed shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5**Further Assurance**. At all times after the date of this Deed, each of the Parties agrees to perform (or procure the performance of) all such acts and things and/or to execute and deliver (or procure the execution and delivery of) all such documents, as may be required by law or as may be necessary or reasonably requested by the other parties for giving full effect to this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6Except as modified by this Deed, the provisions of the Original Agreements apply mutatis mutandis to this Deed.

2.**Novation**

With effect from the Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1The Parties hereby acknowledge and agree that, the Outgoing Party transfers all its rights and obligations under the Original Agreements as amended herein ("**Transferred Rights and Obligations**") to the Incoming Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2The Incoming Party shall enjoy all the rights and benefits of the Outgoing Party in connection with the Transferred Rights and Obligations under the Original Agreements as amended herein. The Incoming Party agrees to perform the Original Agreements as amended herein and be bound by its terms in every way in connection with the Transferred Rights and Obligations as if it were the original party to it in place of the Outgoing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3The Continuing Party agrees to perform the Original Agreements as amended herein and be bound by its terms in every way as if the Incoming Party were the original party to it in place of the Outgoing Party in connection with the Transferred Rights and Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4All references to the Outgoing Party in the Original Agreements as amended herein shall be read and construed as references to the Incoming Party.

3.**Release of obligations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1The Continuing Party and the Outgoing Party release each other from all future obligations to the other in connection with the Transferred Rights and Obligations under the Original Agreements as amended herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2Nothing in this Deed shall affect or prejudice any claim or demand that the Continuing Party or the Outgoing Party may have against each other under or in connection with the Original Agreements as amended herein with respect to matters occurring before the Effective Date or other than in connection with the Transferred Rights and Obligations.

4.**Governing law**

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![image_1.jpg](image_1.jpg)

This Deed and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject matter or formation shall be governed by and construed in accordance with the law of the State of Delaware, USA.

5.**Dispute resolution**

All disputes arising under this agreement shall be governed by and interpreted in accordance with the laws of the State of Delaware, without regard to principles of conflict of laws. The parties to this agreement will submit all disputes arising under this agreement to arbitration in Houston, Texas before a single arbitrator of the American Arbitration Association ("AAA"). The arbitrator shall be selected by application of the rules of the AAA, or by mutual agreement of the parties, except that such arbitrator shall be an attorney admitted to practice law in the State of Delaware. No party to this agreement will challenge the jurisdiction or venue provisions as provided in this section. No party to this agreement will challenge the jurisdiction or venue provisions as provided in this section. Nothing contained herein shall prevent the party from obtaining an injunction. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY.

***[Remainder of page intentionally left blank]***

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![image_1.jpg](image_1.jpg)

This document has been executed as a deed and is delivered and takes effect on the date first above written.

**EXECUTED AS A DEED** for and on behalf of:

**BITMAIN TECHNOLOGIES DELAWARE LIMITED**

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Yan Hao

Title: Director

in the presence of:

____________________________________

Signature of Witness

Name:&nbsp;&nbsp;&nbsp;&nbsp;

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![image_1.jpg](image_1.jpg)

Address:

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![image_1.jpg](image_1.jpg)

**EXECUTED AS A DEED** for and on behalf of:

**CIPHER MINING BLACK PEARL LLC** 

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: William Iwaschuk

Title: Co-President & Chief Legal Officer

in the presence of:

____________________________________

Signature of Witness

Name:&nbsp;&nbsp;&nbsp;&nbsp;Tina Wu

Address: [\*\*\*]

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![image_1.jpg](image_1.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;

**EXECUTED AS A DEED** for and on behalf of:

**CIPHER MINING INFRASTRUCTURE LLC**

By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: William Iwaschuk

Title: Co-President & Chief Legal Officer

in the presence of:

____________________________________

Signature of Witness

Name:&nbsp;&nbsp;&nbsp;&nbsp;Tina Wu

Address: [\*\*\*]

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![image_1.jpg](image_1.jpg)

**SCHEDULE I**

The details of the Remaining Payments under the Original Agreements are as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Model** | **Order Type** | **Delivery Period** | **Amount of Units** | **Due Date** | **The Corresponding Balance Payment** | **Revised Payment Date** | **Relevant Contract No.** |
| S21 XP | Call option | May, 2025 | 6000 | Apr 1, 2025 | US$10,449,000.00 | Within fourteen (14) days after the execution of this Deed | FUTR-XS-00120250206001 |
| S21 XP | Call option | June, 2025 | 26164 | May 1,<br>2025 | US$45,564,606.00 | Within fourteen (14) days after the execution of this Deed | FUTR-XS-00120250206001 |
| S21 XP | Call option | May, 2025 | 6000 | Oct 28, 2025 | US$6,966,000.00 | Within fourteen (14) days after the execution of this Deed | FUTR-XS-00120250206001 |
| S21 XP | Call option | June, 2025 | 26164 | Nov 27,<br>2025 | US$30,376,404.00 | Within fourteen (14) days after the execution of this Deed | FUTR-XS-00120250206001 |
| S21 pro | Firm Order | Sep, 2024 | 15182 | Jun 1, 2025 | US$13,428,782.64 | Within fourteen (14) days after the execution of this Deed | FUTR-XS-00120240709013 |
| S21 pro | Firm Order | Oct, 2024 | 15182 | Jul 1, 2025 | US$13,428,782.64 | Within fourteen (14) days after the execution of this Deed | FUTR-XS-00120240709013 |
| **Total** | / | / | / | / | US$120,213,575.28 |  | / |

---

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![image_1.jpg](image_1.jpg)

**SCHEDULE II**

**COPY OF ORIGINAL AGREEMENTS**

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION** 

I, Tyler Page, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Cipher Mining Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: August 7, 2025 | By: | /s/ Tyler Page |
|  |  | **Tyler Page** |
|  |  | **Chief Executive Officer**<br>*(Principal Executive Officer)* |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION** 

I, Edward Farrell, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Cipher Mining Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: August 7, 2025 | By: | /s/ Edward Farrell |
|  |  | **Edward Farrell** |
|  |  | **Chief Financial Officer**<br>*(Principal Financial Officer)*  |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of Cipher Mining Inc. (the "Company") for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Tyler Page, principal executive officer, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: August 7, 2025 | By: | /s/ Tyler Page |
|  |  | **Tyler Page** |
|  |  | **Chief Executive Officer**<br>*(Principal Executive Officer)* |

---

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of § 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by § 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by § 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of Cipher Mining Inc. (the "Company") for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Edward Farrell, principal financial officer, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: August 7, 2025 | By: | /s/ Edward Farrell |
|  |  | **Edward Farrell** |
|  |  | **Chief Financial Officer**<br>*(Principal Financial Officer)* |

---

This certification accompanies each Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of § 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by § 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by § 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

<br>