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Cipher Mining Provides First Quarter 2024 Business Update

First Quarter 2024 GAAP Net Income of $40m, and Non-GAAP Adjusted Earnings of $63m

First Quarter 2024 Revenues of $48m

Current Self-Mining Hash Rate of ~7.7 EH/s and on track to reach ~9.3 EH/s by end of Third Quarter 2024, with plans to grow to ~25.1 EH/s by end of 2025

NEW YORK, May 07, 2024 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced results for its first quarter ended March 31, 2024, with an update on its operations and deployment strategy.

“We are delighted to announce results for the first quarter of 2024 in which we delivered another quarter of record net income on both a GAAP and Non-GAAP basis,” said Tyler Page, CEO of Cipher.

“We continue to invest heavily in our expansion, and the early stages of construction at our new Black Pearl data center are well underway. We’ve already cleared and leveled over 50 acres, and we will start laying concrete foundations this month. Because of this progress, and our strong financial position, we have decided to accelerate our plans and build the entire 300 MW data center in 2025. We expect to be at ~9.3 EH/s by the end of Q3 2024, and at least ~25.1 EH/s by the end of 2025.”

“We are confident our team’s proven execution and the Company’s best-in-class unit economics will continue to position Cipher as a top miner in this new post-halving environment.”

Finance and Operations Highlights

  • Produced first quarter 2024 GAAP net income of $40 million, and non-GAAP adjusted earnings of $63 million
  • 30 MW expansion at each of Bear and Chief JV data centers, delivering an additional ~1.25 EH/s of self-mining capacity, on track for completion in second quarter 2024
  • 300 MW data center at Black Pearl on track for energization in 2025 with land cleared and leveled for construction

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 2024 results and management’s outlook for operations and growth plans. The live webcast and a webcast replay of the conference call can be accessed from the investor relations section of Cipher’s website at To access this conference call by telephone, register here to receive dial-in numbers and a unique PIN to join the call.

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 and additional bitcoin mining data centers, expectations regarding the operations of mining 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 5, 2024, and in Cipher’s subsequent filings with the Securities and Exchange Commission. 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, 2024  December 31, 2023 
Current assets     
Cash and cash equivalents$88,675  $86,105 
Accounts receivable 680   622 
Receivables, related party 430   245 
Prepaid expenses and other current assets 2,910   3,670 
Bitcoin 123,307   32,978 
Derivative asset 34,228   31,878 
Total current assets 250,230   155,498 
Property and equipment, net 238,541   243,815 
Deposits on equipment 30,187   30,812 
Intangible assets, net 8,162   8,109 
Investment in equity investees 52,621   35,258 
Derivative asset 66,722   61,713 
Operating lease right-of-use asset 6,823   7,077 
Security deposits 23,855   23,855 
Total assets$677,141  $566,137 
Current liabilities     
Accounts payable$7,520  $4,980 
Accounts payable, related party -   1,554 
Accrued expenses and other current liabilities 18,661   22,439 
Finance lease liability, current portion 3,595   3,404 
Operating lease liability, current portion 1,204   1,166 
Warrant liability -   250 
Total current liabilities 30,980   33,793 
Asset retirement obligation 18,708   18,394 
Finance lease liability 10,121   11,128 
Operating lease liability 6,025   6,280 
Deferred tax liability 10,383   5,206 
Total liabilities 76,217   74,801 
Commitments and contingencies (Note 13)     
Stockholders’ equity     
Preferred stock, $0.001 par value; 10,000,000 shares authorized, none issued and outstanding as of March 31, 2024 and December 31, 2023 -   - 
Common stock, $0.001 par value, 500,000,000 shares authorized, 312,649,102 and 296,276,536 shares issued as of March 31, 2024 and December 31, 2023, respectively, and 306,543,330 and 290,957,862 shares outstanding as of March 31, 2024, and December 31, 2023, respectively 313   296 
Additional paid-in capital 697,494   627,822 
Accumulated deficit (96,877)  (136,777)
Treasury stock, at par, 6,105,772 and 5,318,674 shares at March 31, 2024 and December 31, 2023, respectively (6)  (5)
Total stockholders’ equity 600,924   491,336 
Total liabilities and stockholders’ equity$677,141  $566,137 

(in thousands, except for share and per share amounts)
 Three months ended March 31, 
 2024  2023 
Revenue - bitcoin mining$48,137  $21,895 
Costs and operating expenses (income)     
Cost of revenue 14,820   8,141 
Compensation and benefits 13,036   11,937 
General and administrative 6,077   5,483 
Depreciation and amortization 17,244   11,655 
Change in fair value of derivative asset (7,359)  (5,328)
Power sales (1,173)  (98)
Equity in (gains) losses of equity investees (738)  750 
Gains on fair value of bitcoin (40,556)  (4,264)
Other gains -   (2,260)
Total costs and operating expenses (income) 1,351   26,016 
Operating income (loss) 46,786   (4,121)
Other income (expense)     
Interest income 786   76 
Interest expense (400)  (401)
Change in fair value of warrant liability 250   (37)
Other expense (1,958)  - 
Total other income (expense) (1,322)  (362)
Income (loss) before taxes 45,464   (4,483)
Current income tax expense (386)  (17)
Deferred income tax expense (5,178)  (53)
Total income tax expense (5,564)  (70)
Net income (loss)$39,900  $(4,553)
Net income (loss) per share - basic and diluted$0.13  $(0.02)
Weighted average shares outstanding - basic 296,641,499   248,654,082 
Weighted average shares outstanding - diluted 304,397,979   248,654,082 

(in thousands)
 Three months ended March 31, 
 2024  2023 
Cash flows from operating activities     
Net income (loss)$39,900  $(4,553)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:     
Depreciation 17,097   11,655 
Amortization of intangible assets 147   - 
Amortization of operating right-of-use asset 254   222 
Share-based compensation 8,317   8,810 
Equity in (gains) losses of equity investees (738)  750 
Non-cash lease expense 392   401 
Other operating activities 1,958   - 
Income taxes 5,564   53 
Bitcoin received as payment for services (48,079)  (21,717)
Change in fair value of derivative asset (7,359)  (5,328)
Change in fair value of warrant liability (250)  37 
Gains on fair value of bitcoin (40,556)  (4,264)
Changes in assets and liabilities:     
Accounts receivable (58)  (183)
Receivables, related party (185)  (189)
Prepaid expenses and other current assets 760   2,975 
Security deposits -   (12)
Accounts payable 2,540   2,913 
Accounts payable, related party -   (1,529)
Accrued expenses and other current liabilities (6,123)  65 
Lease liabilities (217)  (248)
Net cash used in operating activities (26,636)  (10,142)
Cash flows from investing activities     
Proceeds from sale of bitcoin -   20,958 
Deposits on equipment (4,536)  (1,106)
Purchases of property and equipment (7,902)  (17,947)
Purchases and development of software (200)  - 
Capital distributions from equity investees -   3,807 
Investment in equity investees (18,319)  (3,094)
Net cash (used in) provided by investing activities (30,957)  2,618 
Cash flows from financing activities     
Proceeds from the issuance of common stock 66,171   - 
Offering costs paid for the issuance of common stock (1,623)  - 
Repurchase of common shares to pay employee withholding taxes (3,177)  (481)
Principal payments on financing lease (1,208)  - 
Net cash provided by (used in) financing activities 60,163   (481)
Net increase (decrease) in cash and cash equivalents 2,570   (8,005)
Cash and cash equivalents, beginning of the period 86,105   11,927 
Cash and cash equivalents, end of the period$88,675  $3,922 
Supplemental disclosure of noncash investing and financing activities     
Reclassification of deposits on equipment to property and equipment$5,161  $71,533 
Bitcoin received from equity investees$1,694  $317 
Settlement of related party payable related to master services and supply agreement$1,554  $- 
Equity method investment acquired for non-cash consideration$-  $1,925 
Property and equipment purchases in accounts payable, accounts payable, related party and accrued expenses$-  $5,940 
Deposits on equipment in accounts payable, accounts payable, related party and accrued expenses$-  $691 
Finance lease cost in accrued expenses$-  $1,017 

Non-GAAP Financial Measures

The following are reconciliations of our Adjusted Earnings, in each case excluding 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, to the most directly comparable GAAP measures for the periods indicated (in thousands):

  Three months ended March 31, 
  2024  2023 
Reconciliation of Adjusted Earnings:      
Net income (loss) $39,900  $(4,553)
Change in fair value of derivative asset  (7,359)  (5,328)
Share-based compensation expense  8,317   8,810 
Depreciation and amortization  17,244   11,655 
Deferred income tax expense  5,178   53 
Other gains - nonrecurring  -   (2,260)
Change in fair value of warrant liability  (250)  37 
Adjusted earnings  63,030   8,414 

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