Cipher Mining Provides First Quarter 2025 Business Update
- Revenue grew 16% quarter-over-quarter to $49 million
- Non-GAAP Adjusted Earnings of $6 million ($0.02 per share)
- Secured partnership with Fortress Credit Advisors for Barber Lake financing
- Mining capacity increased to 13.5 EH/s with planned expansion to 23.1 EH/s by Q3
- Large growth pipeline of 2.8 GW site capacity
- Black Pearl Data Center Phase I completion ahead of schedule
- GAAP Net Loss of $39 million ($0.11 per share)
- Uncertainty around tariff landscape and rig delivery schedules
Insights
Cipher Mining's expanded capacity and accelerated infrastructure deployment shows strategic growth amid Bitcoin's post-halving landscape.
Cipher Mining's operational execution shows impressive momentum with their total self-mining hashrate reaching ~13.5 EH/s following the completed Odessa fleet upgrade. The company's decision to accelerate deployment at Black Pearl demonstrates operational agility - by redeploying idle rigs while awaiting new machines, they'll bring 2.5 EH/s online a full quarter earlier than planned without additional capital expenditure.
This tactical approach will boost their hashrate to ~16.0 EH/s by Q2-end and ~23.1 EH/s by Q3-end, representing a 71% increase from current levels if executed as scheduled. Their cautious mention of "monitoring the tariff landscape" indicates appropriate risk management around equipment procurement timing and cost considerations.
The Barber Lake development partnership with Fortress represents a strategic evolution beyond pure Bitcoin mining toward a hybrid infrastructure model. By attracting hyperscale computing tenants alongside mining operations, Cipher is diversifying revenue potential and improving infrastructure utilization economics. Their 2.8 GW development pipeline provides substantial runway for future growth, positioning the company for significant scale as market conditions evolve.
Cipher's 16% QoQ revenue growth and strategic capital allocation offset GAAP losses, showing disciplined expansion in mining operations.
Cipher Mining delivered solid Q1 financial performance with revenue reaching $49 million, a 16% increase quarter-over-quarter despite the challenging dynamics of the mining sector. While the company reported a GAAP net loss of $39 million ($0.11 per share), their non-GAAP adjusted earnings of $6 million ($0.02 per share) suggest substantial non-cash expenses are impacting the bottom line.
The capital allocation strategy demonstrates financial discipline through several key decisions. Their accelerated deployment of existing equipment at Black Pearl enables earlier hashrate expansion "at no additional capital expenditure," improving returns on already-owned assets. Meanwhile, the Fortress partnership for Barber Lake represents a capital-efficient financing structure that preserves balance sheet flexibility while pursuing expansion.
The diversification into hosting for hyperscale computing at Barber Lake is particularly strategic, potentially creating more predictable revenue streams compared to Bitcoin mining's inherent volatility. This hybrid business model should improve overall financial risk profile while maximizing the utility of their power infrastructure investments.
The company's emphasis on "strong treasury management" and "disciplined approach to growth" suggests appropriate focus on liquidity preservation during their capital-intensive growth phase, a crucial consideration given the substantial resources required to develop their 2.8 GW site capacity pipeline.
First Quarter 2025 Revenue of
Signed term sheet with Fortress Credit Advisors to serve as the JV financing partner at Barber Lake
Nearing completion of 150 MW Phase I infrastructure at Black Pearl
First Quarter 2025 GAAP Net Loss of
NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today announced its first quarter 2025 financial results, with an update on its operations and business strategy.
“The first quarter was marked by disciplined execution and steady progress as we advanced our 2025 expansion plans,” said Tyler Page, CEO. “Notably, we’re thrilled to have partnered with Fortress, a best-in-class financing partner, to develop a next-generation data center at Barber Lake. Fortress will not only bring extensive experience in data center development, but also a strong network of relationships with hyperscalers that complements our active discussions.”
Over the quarter, Cipher also made substantial progress on expanding its mining footprint, with rig deployment at Black Pearl anticipated ahead of schedule.
Mr. Page added, “We are nearing completion of the Black Pearl Data Center’s Phase I core and shell, and all four substation transformers are now onsite. Given the accelerated progress and expected energization in May, we’ve decided to immediately deploy rigs from inventory at the newly constructed site while we await the arrival of new machines expected later this summer. This strategic decision will bring approximately 2.5 exahashes per second online one quarter earlier than anticipated through the efficient use of idle assets at no additional capital expenditure to the company.”
This redeployment will bring Cipher to ~16.0 EH/s by the end of the second quarter, with expectations to scale to ~23.1 EH/s by the end of the third quarter, as the Company continues to monitor the tariff landscape and new rig delivery schedules come into focus.
“Cipher’s strong treasury management, disciplined approach to growth, and site flexibility continue to give me confidence in our ability to navigate a dynamic market environment and drive long-term success,” said Mr. Page.
Finance and Operations Highlights
- Completed first full quarter of operations with the upgraded Odessa fleet, which increased Cipher’s total self-mining hashrate to ~13.5 EH/s
- Signed term sheet with Fortress Credit Advisors LLC to serve as the JV financing partner at Barber Lake
- Infrastructure at Black Pearl Phase I nearing completion, with energization expected ahead of schedule
- Continued HPC tenant momentum at Barber Lake site with multiple tenants under NDA and performing due diligence
- Pipeline of 2.8 GW of site capacity
- Q1 2025 net loss of
$39 million , or$0.11 per diluted share, and adjusted earnings of$6 million , or$0.02 per diluted 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 focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to the world's largest HPC companies. 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, such as, statements about the Company’s beliefs and expectations regarding its future results of operations and financial position, its planned business model and strategy, its bitcoin mining and HPC data center development, timing and likelihood of success, capacity, functionality and timing of operation of data centers, expectations regarding the operations of data centers, potential strategic initiatives, such as joint ventures and partnerships, and management plans and objectives, are forward-looking statements and should be evaluated as such. 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 its 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, Cipher’s evolving business model and strategy and efforts it may make to modify aspects of its business model or engage in various strategic initiatives, 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 Cipher’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission (“SEC”) on February 25, 2025, 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.
Website Disclosure
The company maintains a dedicated investor website at https://investors.ciphermining.com/investors (“Investors’ Website”). Financial and other important information regarding the Company is routinely posted on and accessible through the Investors Website. Cipher uses its Investors’ Website as a distribution channel of material information about the Company, including through press releases, investor presentations, reports and notices of upcoming events. Cipher intends to utilize its 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. In addition, you may sign up to automatically receive email alerts and other information about the Company by visiting the “Email Alerts” option under the Investors Resources section of Cipher’s Investors’ Website and submitting your email address.
Non-GAAP Financial Measures
This press release includes 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 Stated (“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 press release, 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.
Contacts:
Investor Contact:
Courtney Knight
Head of Investor Relations at Cipher Mining
Courtney.knight@ciphermining.com
Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com
| CIPHER MINING INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except for share and per share amounts) (unaudited) | |||||||
| March 31, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 23,173 | $ | 5,585 | |||
| Accounts receivable | 758 | 596 | |||||
| Receivables, related party | 300 | 2,090 | |||||
| Prepaid expenses and other current assets | 2,970 | 3,387 | |||||
| Bitcoin | 52,024 | 92,651 | |||||
| Receivable for bitcoin collateral | 32,497 | 32,248 | |||||
| Derivative asset | 42,835 | 31,648 | |||||
| Total current assets | 154,557 | 168,205 | |||||
| Restricted cash | 14,392 | 14,392 | |||||
| Property and equipment, net | 477,972 | 480,865 | |||||
| Deposits on equipment | 122,502 | 38,872 | |||||
| Intangible assets, net | 9,043 | 8,881 | |||||
| Investment in equity investees | 48,499 | 53,908 | |||||
| Derivative asset | 50,165 | 54,022 | |||||
| Operating lease right-of-use asset | 12,192 | 12,561 | |||||
| Security deposits | 19,776 | 19,782 | |||||
| Other noncurrent assets | 4,694 | 3,958 | |||||
| Total assets | $ | 913,792 | $ | 855,446 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 29,879 | $ | 22,699 | |||
| Accrued expenses and other current liabilities | 66,300 | 69,824 | |||||
| Finance lease liability, current portion | 3,903 | 3,798 | |||||
| Operating lease liability, current portion | 3,200 | 3,127 | |||||
| Short-term borrowings | 35,459 | 32,330 | |||||
| Total current liabilities | 138,741 | 131,778 | |||||
| Asset retirement obligations | 20,801 | 20,282 | |||||
| Finance lease liability | 6,315 | 7,331 | |||||
| Operating lease liability | 9,506 | 9,833 | |||||
| Deferred tax liability | 3,634 | 4,269 | |||||
| Total liabilities | 178,997 | 173,493 | |||||
| Commitments and contingencies (Note 13) | |||||||
| Stockholders’ equity | |||||||
| Preferred stock, | - | - | |||||
| Common stock, | 371 | 361 | |||||
| Additional paid-in capital | 954,812 | 863,015 | |||||
| Accumulated deficit | (220,387 | ) | (181,412 | ) | |||
| Treasury stock, at par, 455,899 and 10,648,632 shares at March 31, 2025 and December 31, 2024, respectively | (1 | ) | (11 | ) | |||
| Total stockholders’ equity | 734,795 | 681,953 | |||||
| Total liabilities and stockholders’ equity | $ | 913,792 | $ | 855,446 | |||
| CIPHER MINING INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except for share and per share amounts) (unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Revenue - bitcoin mining | $ | 48,959 | $ | 48,137 | |||
| Costs and operating (expenses) income | |||||||
| Cost of revenue | (14,894 | ) | (14,820 | ) | |||
| Compensation and benefits | (14,303 | ) | (13,036 | ) | |||
| General and administrative | (8,951 | ) | (6,077 | ) | |||
| Depreciation and amortization | (43,467 | ) | (17,244 | ) | |||
| Change in fair value of derivative asset | 7,330 | 7,359 | |||||
| Power sales | 991 | 1,173 | |||||
| Equity in income (losses) of equity investees | (5,292 | ) | 738 | ||||
| Unrealized (losses) gains on fair value of bitcoin | (20,178 | ) | 40,556 | ||||
| Realized gains on sale of bitcoin | 12,196 | - | |||||
| Other gains | (479 | ) | - | ||||
| Total costs and operating expenses | (87,047 | ) | (1,351 | ) | |||
| Operating (loss) income | (38,088 | ) | 46,786 | ||||
| Other income (expense) | |||||||
| Interest income | 190 | 786 | |||||
| Interest expense | (777 | ) | (400 | ) | |||
| Change in fair value of warrant liability | - | 250 | |||||
| Other expense | (156 | ) | (1,958 | ) | |||
| Total other expense | (743 | ) | (1,322 | ) | |||
| (Loss) income before taxes | (38,831 | ) | 45,464 | ||||
| Current income tax expense | (779 | ) | (386 | ) | |||
| Deferred income tax benefit (expense) | 635 | (5,178 | ) | ||||
| Total income tax expense | (144 | ) | (5,564 | ) | |||
| Net (loss) income | $ | (38,975 | ) | $ | 39,900 | ||
| (Loss) income per share - basic and diluted | $ | (0.11 | ) | $ | 0.13 | ||
| Weighted average shares outstanding - basic | 360,514,620 | 296,641,499 | |||||
| Weighted average shares outstanding - diluted | 360,514,620 | 304,397,979 | |||||
Non-GAAP Financial Measures
The following are reconciliations of our Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share - diluted, 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, except for per share amounts):
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Reconciliation of Adjusted Earnings: | |||||||
| Net (loss) income | $ | (38,975 | ) | $ | 39,900 | ||
| Change in fair value of derivative asset | (7,330 | ) | (7,359 | ) | |||
| Share-based compensation expense | 9,132 | 8,317 | |||||
| Depreciation and amortization | 43,467 | 17,244 | |||||
| Deferred income tax (benefit) expense | (635 | ) | 5,178 | ||||
| Other losses - nonrecurring | 479 | - | |||||
| Change in fair value of warrant liability | - | (250 | ) | ||||
| Adjusted (loss) earnings | $ | 6,138 | $ | 63,030 | |||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Reconciliation of Adjusted Earnings per share - diluted: | |||||||
| Net (loss) income per share - diluted | $ | (0.11 | ) | $ | 0.13 | ||
| Change in fair value of derivative asset per diluted share | (0.02 | ) | (0.03 | ) | |||
| Share-based compensation expense per diluted share | 0.03 | 0.03 | |||||
| Depreciation and amortization per diluted share | 0.12 | 0.06 | |||||
| Deferred income tax (benefit) expense per diluted share | — | 0.02 | |||||
| Other losses - nonrecurring per diluted share | — | — | |||||
| Change in fair value of warrant liability per diluted share | — | — | |||||
| Adjusted (loss) earnings per diluted share | $ | 0.02 | $ | 0.21 | |||
FAQ
What was Cipher Mining's (CIFR) revenue in Q1 2025?
What is Cipher Mining's (CIFR) planned hashrate expansion for 2025?
What was CIFR's net loss in Q1 2025?
Who is Cipher Mining's new partner for the Barber Lake project?
What is the status of Cipher Mining's Black Pearl Data Center project?
