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Cipher Mining Provides First Quarter 2023 Business Update

Four Data Centers Operational and Hashing at All-Time High Hash Rate Capacity of Over 6.0 Exahash per Second (“EH/s”)

Purchased 11,000 Canaan A1346 Model Mining Rigs Expected to be Delivered and Energized in Q3 Bringing Self-Mining Hash Rate Capacity to 7.2 EH/s

GAAP Diluted Net Loss of $0.03 per Share (Non-GAAP Diluted Net Income of $0.03 per Share)

NEW YORK, May 09, 2023 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ: CIFR) ("Cipher" or the "Company"), a leading developer and operator of bitcoin mining data centers, today announced results for its first quarter 2023, with an update on its operations and deployment strategy.

"I am delighted to announce that we have completed the first phase of growth at our Odessa facility and have achieved a self-mining capacity of over 6.0 EH/s across our portfolio,” said Tyler Page, CEO of Cipher. "We have also purchased an additional 11,000 miners from Canaan, which we expect to be delivered and energized in the third quarter. This will complete the buildout at our Odessa facility and bring our total self-mining capacity to over 7.2 EH/s across our portfolio."

Finance and Operations Updates

  • Across four initial data centers, Cipher has deployed over 6.0 EH/s to date
  • The Company purchased an additional 11,000 mining rigs expected to complete the Odessa data center buildout in Q3, further expanding Cipher’s highly efficient machine fleet to over 70,000 rigs capable of producing 7.2 EH/s of hash rate
  • The weighted average power price at the Company’s sites currently under contract is approximately 2.7 c/kWh with 96% of the portfolio energized through fixed price power
  • Cipher produced a first quarter 2023 GAAP diluted net loss of $0.03 per share and non-GAAP diluted net income of $0.03 per share

Business Update Call and Webcast

Cipher will host a conference call and webcast today at 8:00 a.m. Eastern Time to discuss the first quarter results for 2023 and management’s outlook for future financial and operational performance. The live webcast and a webcast replay of the conference call can be accessed from the investor relations page of Cipher's website at To access this conference call by telephone, dial (800) 715-9871 (toll-free within the U.S.) or +1 (646) 307-1963 (for investors outside of the U.S.) and use the Conference ID 8827688.

About Cipher

Cipher is an emerging technology company focused on the development and operation of bitcoin mining data centers. Cipher is dedicated to expanding and strengthening the Bitcoin network's critical infrastructure. Together with its diversely talented team and strategic partnerships, Cipher aims to be a market leader in bitcoin mining growth and innovation. To learn more about Cipher, please visit

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations regarding our future results of operations and financial position, business strategy, timing and likelihood of success, potential expansion of bitcoin mining data centers, and management plans and objectives, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and our management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher's securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, variations in performance across competitors, changes in laws and regulations affecting Cipher's business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 14, 2023, and in Cipher's subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Investor Contact:
Josh Kane
Head of Investor Relations at Cipher Mining

Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations


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

 March 31, 2023  December 31, 2022 
Current assets     
Cash and cash equivalents$3,922  $11,927 
Accounts receivable 281   98 
Receivables, related party 1,291   1,102 
Prepaid expenses and other current assets 4,279   7,254 
Bitcoin 9,576   6,283 
Derivative asset 17,129   21,071 
Total current assets 36,478   47,735 
Property and equipment, net 263,027   191,784 
Deposits on equipment 1,143   73,018 
Investment in equity investees 34,529   37,478 
Derivative asset 54,901   45,631 
Operating lease right-of-use asset 4,865   5,087 
Security deposits 17,742   17,730 
Total assets$412,685  $418,463 
Current liabilities     
Accounts payable$10,667  $14,286 
Accounts payable, related party 1,554   3,083 
Accrued expenses and other current liabilities 17,341   19,353 
Finance lease liability, current portion 2,638   2,567 
Operating lease liability, current portion 1,058   1,030 
Warrant liability 44   7 
Total current liabilities 33,302   40,326 
Asset retirement obligation 17,110   16,682 
Finance lease liability 11,542   12,229 
Operating lease liability 4,218   4,494 
Deferred tax liability 1,893   1,840 
Total liabilities 68,065   75,571 
Commitments and contingencies (Note 12)     
Stockholders’ equity     
Preferred stock, $0.001 par value; 10,000,000 shares authorized, none issued and outstanding as of March 31, 2023 and December 31, 2022 -   - 
Common stock, $0.001 par value, 500,000,000 shares authorized, 253,050,088 and 251,095,305 shares issued as of March 31, 2023 and December 31, 2022, respectively, and 248,906,007 and 247,551,958 shares outstanding as of March 31, 2023 and December 31, 2022, respectively 253   251 
Additional paid-in capital 462,181   453,854 
Accumulated deficit (117,810)  (111,209)
Treasury stock, at par, 4,144,081 and 3,543,347 shares at March 31, 2023 and December 31, 2022, respectively (4)  (4)
Total stockholders’ equity 344,620   342,892 
Total liabilities and stockholders’ equity$412,685  $418,463 


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

 Three Months Ended March 31, 
 2023  2022 
Revenue - bitcoin mining$21,895  $- 
Costs and operating expenses (income)     
Cost of revenue 8,141   - 
General and administrative 17,420   17,390 
Depreciation 11,655   7 
Change in fair value of derivative asset (5,328)  - 
Power sales (98)  - 
Equity in losses of equity investees 750   153 
Realized gain on sale of bitcoin (4,021)  - 
Impairment of bitcoin 1,805   4 
Other gains (2,260)  - 
Total costs and operating expenses 28,064   17,554 
Operating loss (6,169)  (17,554)
Other income (expense)     
Interest income 76   7 
Interest expense (401)  - 
Change in fair value of warrant liability (37)  48 
Total other income (expense) (362)  55 
Loss before taxes (6,531)  (17,499)
Current income tax expense (17)  - 
Deferred income tax expense (53)  - 
Total income tax expense (70)  - 
Net loss$(6,601) $(17,499)
Net loss per share - basic and diluted$(0.03) $(0.07)
Weighted average shares outstanding - basic and diluted 248,654,082   250,174,255 


(in thousands)

 Three Months Ended March 31, 
 2023  2022 
Cash flows from operating activities     
Net loss$(6,601) $(17,499)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:     
Depreciation 11,655   7 
Amortization of operating right-of-use asset 222   140 
Share-based compensation 8,810   9,514 
Equity in losses of equity investees 750   153 
Impairment of bitcoin 1,805   4 
Non-cash lease expense 401   - 
Deferred income taxes 53   - 
Bitcoin received as payment for services (21,717)  - 
Change in fair value of derivative asset (5,328)  - 
Change in fair value of warrant liability 37   (48)
Realized gain on sale of bitcoin (4,021)  - 
Changes in assets and liabilities:     
Proceeds from sale of bitcoin 20,958   - 
Accounts receivable (183)  - 
Receivables, related party (189)  - 
Prepaid expenses and other current assets 2,975   2,288 
Security deposits (12)  (1,010)
Accounts payable 2,913   120 
Accounts payable, related party (1,529)  - 
Accrued expenses and other current liabilities 65   2,904 
Lease liabilities (248)  106 
Net cash provided by (used in) operating activities 10,816   (3,321)
Cash flows from investing activities     
Deposits on equipment (1,106)  (96,914)
Purchases of property and equipment (17,947)  (7,059)
Capital distributions from equity investees 3,807   - 
Investment in equity investees (3,094)  - 
Net cash used in investing activities (18,340)  (103,973)
Cash flows from financing activities     
Repurchase of common shares to pay employee withholding taxes (481)  (3,052)
Net cash used in financing activities (481)  (3,052)
Net decrease in cash and cash equivalents (8,005)  (110,346)
Cash and cash equivalents, beginning of the period 11,927   209,841 
Cash and cash equivalents, end of the period$3,922  $99,495 
Supplemental disclosure of noncash investing and financing activities     
Reclassification of deposits on equipment to property and equipment$71,533  $- 
Property and equipment purchases in accounts payable, accounts payable, related party and accrued expenses$5,940  $3,003 
Equity method investment acquired for non-cash consideration$1,925  $7,118 
Finance lease costs in accrued expenses$1,017  $- 
Deposits on equipment in accounts payable and accounts payable, related party$691  $2,511 
Bitcoin received from equity investees$317  $195 
Right-of-use asset obtained in exchange for operating lease liability$-  $5,859 
Investment in equity investees in accrued expenses$-  $428 
Reclassification of deferred investment costs to investment in equity investees$-  $174 

Non-GAAP Financial Measures

The following is a reconciliation of our non-GAAP loss from operations, which excludes the impact of (i) depreciation and amortization, (ii) the non-cash change in the fair value of our derivative asset (iii) share-based compensation expense and (iv) nonrecurring gains, to its most directly comparable GAAP measure for the periods indicated (in thousands):

  Three Months Ended March 31, 
  2023  2022 
Reconciliation of non-GAAP income (loss) from operations:      
Operating loss $(6,169) $(17,554)
Depreciation and amortization  11,877   7 
Change in fair value of derivative asset  (5,328)  - 
Share-based compensation expense  8,810   9,514 
Other gains - nonrecurring  (2,254)  - 
Non-GAAP income (loss) from operations $6,936  $(8,033)

The following are reconciliations of our non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per share, in each case excluding the impact of (i) depreciation and amortization, (ii) the non-cash change in the fair value of our derivative asset, (iii) share-based compensation expense, (iv) nonrecurring gains, (v) the non-cash change in the fair value of our warrant liability and (vi) deferred income tax expense, to the most directly comparable GAAP measures for the periods indicated:

  Three Months Ended March 31, 
  2023  2022 
Reconciliation of non-GAAP net income (loss):      
Net loss $(6,601) $(17,499)
Non-cash adjustments to net loss:      
Depreciation and amortization  11,877   7 
Change in fair value of derivative asset  (5,328)  - 
Share-based compensation expense  8,810   9,514 
Other gains - nonrecurring  (2,254)  - 
Change in fair value of warrant liability  (37)  48 
Deferred income tax expense  (53)  - 
Total non-cash adjustments to net loss  13,015   9,569 
Non-GAAP net income (loss) $6,414  $(7,930)
Reconciliation of non-GAAP basic and diluted net income (loss) per share:      
Basic and diluted net loss per share $(0.03) $(0.07)
Depreciation and amortization (per share)  0.05   - 
Change in fair value of derivative asset (per share)  (0.02)  - 
Share-based compensation expense (per share)  0.04   0.04 
Other gains - nonrecurring (per share)  (0.01)  - 
Change in fair value of warrant liability (per share)  -   - 
Deferred income tax expense (per share)  -   - 
Non-GAAP basic and diluted net income (loss) per share $0.03  $(0.03)

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