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Cipher Mining Provides Second Quarter 2024 Business Update
Источник: Nasdaq GlobeNewswire / 13 авг 2024 07:00:00 America/New_York
Current hashrate of ~8.7 EH/s on target for ~13.5 EH/s by end of 2024 and ~35.0 EH/s by end of 2025
Acquiring additional 1.7 GW of power capacity suitable for HPC infrastructure or bitcoin mining
Second Quarter 2024 GAAP Net Loss of $15m, and Non-GAAP Adjusted Loss of $3m
NEW YORK, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced results for its second quarter ended June 30, 2024, with an update on its operations and business strategy.
“We currently operate ~8.7 EH/s of self-mining hashrate and are on track to hit ~13.5 EH/s by year-end 2024, and ~35.0 EH/s by year-end 2025,” said Tyler Page, CEO of Cipher.
“In addition to constructing the 300 MW facility at Black Pearl, we are on track to close the acquisition of our new Reveille data center site with up to 200 MW of capacity and are pleased to announce we have executed a term sheet for an option to acquire three new sites with a cumulative power capacity of 1.5 GW. These sites are well-suited for both bitcoin mining and HPC data centers. With our operations and construction teams, which are led by seasoned experts who have built and run HPC data centers for some of the top hyperscalers in the world, we are uniquely positioned to maximize opportunities in both bitcoin mining and HPC infrastructure.”
“We expect developing HPC infrastructure will be complementary to our bitcoin mining business and that we can strike the right balance between the two business lines to drive significant shareholder value for many years,” concluded Mr. Page.
Finance and Operations Highlights
- Upgrade of Odessa site bringing total self-mining hashrate to ~13.5 EH/s on track for Q4 2024
- Construction of 300 MW data center at Black Pearl underway with expected energization in Q2 2025
- Acquisition of Reveille data center site with up to 200 MW of capacity well-suited for HPC data centers expected to close soon
- Executed term sheet for option to acquire 1.5 GW of new sites in North America suitable for both HPC or bitcoin mining data centers
- Q2 2024 GAAP diluted net loss of $0.05 per share, and non-GAAP diluted adjusted loss of $0.01 per share
Business Update Call and Webcast
The live webcast and a webcast replay of the conference call can be accessed from the investor relations section of Cipher’s website at https://investors.ciphermining.com. 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 https://www.ciphermining.com/.
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.
Contacts:
Investor Contact:
Josh Kane
Head of Investor Relations at Cipher Mining
josh.kane@ciphermining.comMedia Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.comCIPHER MINING INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for share and per share amounts)June 30, 2024 December 31, 2023 (unaudited) ASSETS Current assets Cash and cash equivalents $ 122,557 $ 86,105 Accounts receivable 286 622 Receivables, related party 176 245 Prepaid expenses and other current assets 3,599 3,670 Bitcoin 138,079 32,978 Derivative asset 44,702 31,878 Total current assets 309,399 155,498 Property and equipment, net 239,075 243,815 Deposits on equipment 58,063 30,812 Intangible assets, net 8,503 8,109 Investment in equity investees 49,949 35,258 Derivative asset 78,228 61,713 Operating lease right-of-use asset 9,926 7,077 Security deposits 22,246 23,855 Other noncurrent assets 203 - Total assets $ 775,592 $ 566,137 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 13,733 $ 4,980 Accounts payable, related party - 1,554 Accrued expenses and other current liabilities 17,855 22,439 Finance lease liability, current portion 3,595 3,404 Operating lease liability, current portion 1,262 1,166 Warrant liability - 250 Total current liabilities 36,445 33,793 Asset retirement obligation 19,337 18,394 Finance lease liability 9,281 11,128 Operating lease liability 9,181 6,280 Deferred tax liability 10,577 5,206 Total liabilities 84,821 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 June 30, 2024 and December 31, 2023 - - Common stock, $0.001 par value, 500,000,000 shares authorized, 335,557,872 and 296,276,536 shares issued as of June 30, 2024 and December 31, 2023, respectively, and 328,616,426 and 290,957,862 shares outstanding as of June 30, 2024, and December 31, 2023, respectively 336 296 Additional paid-in capital 802,610 627,822 Accumulated deficit (112,168 ) (136,777 ) Treasury stock, at par, 6,941,446 and 5,318,674 shares at June 30, 2024 and December 31, 2023, respectively (7 ) (5 ) Total stockholders’ equity 690,771 491,336 Total liabilities and stockholders’ equity $ 775,592 $ 566,137 CIPHER MINING INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for share and per share amounts)
(unaudited)Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Revenue - bitcoin mining $ 36,808 $ 31,224 $ 84,945 $ 53,119 Costs and operating expenses (income) Cost of revenue 14,281 15,868 29,101 24,009 Compensation and benefits 16,285 12,668 29,321 24,605 General and administrative 8,365 8,667 14,442 14,150 Depreciation and amortization 20,251 14,412 37,495 26,067 Change in fair value of derivative asset (21,980 ) (3,222 ) (29,339 ) (8,550 ) Power sales (1,109 ) (5,651 ) (2,282 ) (5,749 ) Equity in losses (gains) of equity investees 577 1,431 (161 ) 2,181 Losses (gains) on fair value of bitcoin 16,309 (860 ) (24,247 ) (5,124 ) Other gains - - - (2,260 ) Total costs and operating expenses (income) 52,979 43,313 54,330 69,329 Operating (loss) income (16,171 ) (12,089 ) 30,615 (16,210 ) Other income (expense) Interest income 1,053 25 1,839 101 Interest expense (372 ) (485 ) (772 ) (886 ) Change in fair value of warrant liability - (22 ) 250 (59 ) Other income (expense) 727 (12 ) (1,231 ) (12 ) Total other income (expense) 1,408 (494 ) 86 (856 ) (Loss) income before taxes (14,763 ) (12,583 ) 30,701 (17,066 ) Current income tax expense (335 ) (31 ) (721 ) (48 ) Deferred income tax expense (193 ) (584 ) (5,371 ) (637 ) Total income tax expense (528 ) (615 ) (6,092 ) (685 ) Net (loss) income $ (15,291 ) $ (13,198 ) $ 24,609 $ (17,751 ) Net (loss) income per share - basic and diluted $ (0.05 ) $ (0.05 ) $ 0.08 $ (0.07 ) Weighted average shares outstanding - basic 314,353,742 249,127,664 305,497,621 248,892,181 Weighted average shares outstanding - diluted 314,353,742 249,127,664 316,652,300 248,892,181 CIPHER MINING INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)Six months ended June 30, 2024 2023 Cash flows from operating activities Net income (loss) $ 24,609 $ (17,751 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation 37,192 26,067 Amortization of intangible assets 303 - Amortization of operating right-of-use asset 565 452 Share-based compensation 21,654 17,988 Equity in (gains) losses of equity investees (161 ) 2,181 Non-cash lease expense 762 878 Other operating activities (1,839 ) - Income taxes 5,371 637 Bitcoin received as payment for services (85,281 ) (52,836 ) Change in fair value of derivative asset (29,339 ) (8,550 ) Change in fair value of warrant liability (250 ) 59 Gains on fair value of bitcoin (24,247 ) (5,124 ) Changes in assets and liabilities: Accounts receivable 336 (282 ) Receivables, related party 69 (512 ) Prepaid expenses and other current assets 71 4,994 Security deposits 1,609 (12 ) Other non-current assets (203 ) - Accounts payable (47 ) (185 ) Accounts payable, related party - (1,529 ) Accrued expenses and other current liabilities (2,745 ) 6,323 Lease liabilities (417 ) (594 ) Net cash used in operating activities (51,988 ) (27,796 ) Cash flows from investing activities Proceeds from sale of bitcoin 10,334 52,475 Deposits on equipment (35,748 ) (2,932 ) Purchases of property and equipment (15,766 ) (28,541 ) Purchases and development of software (698 ) - Prepayments on financing leases - (3,676 ) Capital distributions from equity investees - 3,807 Investment in equity investees (20,435 ) (3,095 ) Net cash (used in) provided by investing activities (62,313 ) 18,038 Cash flows from financing activities Proceeds from the issuance of common stock 163,276 2,821 Offering costs paid for the issuance of common stock (2,868 ) (76 ) Repurchase of common shares to pay employee withholding taxes (7,237 ) (1,114 ) Principal payments on financing lease (2,418 ) (2,059 ) Net cash provided by (used in) financing activities 150,753 (428 ) Net increase (decrease) in cash and cash equivalents 36,452 (10,186 ) Cash and cash equivalents, beginning of the period 86,105 11,927 Cash and cash equivalents, end of the period $ 122,557 $ 1,741 Six months ended June 30, 2024 2023 Supplemental disclosure of noncash investing and financing activities Reclassification of deposits on equipment to property and equipment $ 13,799 $ 72,130 Bitcoin received from equity investees $ 5,907 $ 317 Settlement of related party payable related to master services and supply agreement $ 1,554 $ - Right-of-use asset obtained in exchange for finance lease liability $ 3,414 $ 14,212 Equity method investment acquired for non-cash consideration $ - $ 1,926 Sales tax accrual on machine purchases $ - $ 1,837 Finance lease cost in accrued expenses $ - $ 2,034 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 June 30, Six months ended June 30, 2024 2023 2024 2023 Reconciliation of Adjusted Earnings: Net (loss) income $ (15,291 ) $ (13,198 ) $ 24,609 $ (17,751 ) Change in fair value of derivative asset (21,980 ) (3,222 ) (29,339 ) (8,550 ) Share-based compensation expense 13,336 9,178 21,654 17,988 Depreciation and amortization 20,251 14,412 37,495 26,067 Deferred income tax expense 193 584 5,371 637 Other gains - nonrecurring - - - (2,260 ) Change in fair value of warrant liability - 22 (250 ) 59 Adjusted (loss) earnings (3,491 ) 7,776 59,540 16,190 Reconciliation of Adjusted (loss) earnings per share: Adjusted (loss) earnings $ (3,491 ) $ 7,776 $ 59,540 $ 16,190 Weighted average shares outstanding - diluted 314,353,742 249,127,664 316,652,300 248,892,181 Adjusted (loss) earnings per share $ (0.01 ) $ 0.03 $ 0.19 $ 0.07