Slide 1: Presentation for Business Update
Presentation for Business Update OCTOBER 31, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This communication 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 i
Slide 3: A Data Center Developer with a Built-In Offtake
A DATA CENTER DEVELOPER WITH A BUILT-IN OFFTAKE • Demonstrated expertise at sourcing greenfield Growth of AI/HPC opportunities for data center development Data Centers • Focus on low energy prices and ability to monetize curtailment for optimal mining unit economics Pipeline • Data center constructi
Slide 4: Key Indicators as of September 30, 2024
Key Indicators as of September 30, 2024 SELF-MINING HASHRATE ~9.3 EH/s ~13.5 EH/s @ ~18.9 J/TH ~1,508 BTC September 30, 2024 YE 2024E(1) BTC Held SITE PIPELINE CAPACITY ~2.7c + Weighted Average ~327 MW ~2.3 GW Power Price Current Capacity(2) Future Pipeline Capacity at 6 New Sites(3) (c/kwh)4 Note:
Slide 5: Current Portfolio
Current Portfolio
Slide 6: Overview
Overview YTD Operations Update Steady Scaling ~927 MW ~$18,162 All-in Electricity Cost per BTC YTD 2024(1) Power Capacity(4) ~866 MW Odessa ~$17,561 all-in electricity cost per BTC YTD 2024(2) ~83% of September 2024 BTC production Cipher JV Data Centers ~327 MW ~327 MW Alborz, Bear & Chief ~266 MW ~
Slide 7: Operational Highlights: Odessa
ODESSA Operational Highlights Odessa – 83% of BTC Production(1) ~7.1 EH/s ~11.3 EH/s Current Operating YE 2024 Operating Hashrate Hashrate(2) ~$25,488 ~207 MW ~1,872 BTC All-in Electricity Total Power BTC Mined Cost per BTC Capacity YTD(4) Post-Halving(3) (1) Reflects approximate percentage of Ciphe
Slide 8: Operational Highlights: Cipher JV Data Centers
CIPHER JV DATA CENTERS Operational Highlights Alborz, Bear & Chief – 17% of BTC Production(1) ~4.4 EH/s 120 MW Current Operating Total Power Hashrate(2) Capacity ~$34,160 ~488 BTC All-in Electricity BTC Mined Cost per BTC YTD(4) Post-Halving(3) (1) Reflects approximate percentage of Cipher’s Septemb
Slide 9: Development Pipeline
Development Pipeline
Slide 10: Growth: Black Pearl
BLACK PEARL Growth: Black Pearl Black Pearl 300 MW 70 Acres Total Power Total Capacity Acreage • Energization expected in 2Q 2025 • Data center construction underway – Steel erection, concrete foundations, and underground electrical progressing on schedule • BTC mining design envisions 250 MW of air
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Slide 12: Growth: Barber Lake
BARBER LAKE Growth: Barber Lake Barber Lake 300 MW 250 Acres Approved Total Power Capacity Acreage • Site is energized and ready for construction Barber Lake Site • Site features: Colorado City – 250 acres of owned land in West Texas – Newly constructed high-to-mid voltage substation – Approvals for
Slide 13: Growth: Reveille
REVEILLE San Antonio Growth: Reveille Reveille 70 MW 200 MW Reveille Site Initial Approved Total Potential Power Capacity Power Capacity • Site features 70 MW available in Q4 2027, with potential to expand the capacity to 200 MW - subject to regulatory approvals Cotulla • Located in LZ_South, which
Slide 14: Growth: Mikeska
MIKESKA Growth: Mikeska Mikeska Site Mikeska 500 MW 100 Acres Total Potential Total Power Capacity Acreage • Option to purchase new site based on number of megawatts approved for interconnection • Site features: Mikeska Site – 100 acres of land with exclusive option to own – Located in LZ_West – Tot
Slide 15: Growth: Milsing
MILSING Growth: Milsing Milsing 500 MW 187 Acres Total Potential Total Power Capacity Acreage • Option to purchase new site based on number of College Station megawatts approved for interconnection Milsing Site • Site features: – 187 acres of land with exclusive option to own – Located in LZ_North,
Slide 16: Growth: McLennan
MCLENNAN Growth: McLennan McLennan 500 MW 293 Acres Total Potential Total Power Capacity Acreage • Option to purchase new site based on number of megawatts approved for interconnection • Site features: Waco – 293 acres of land with exclusive option to own – Located in LZ_North, which diversifies exp
Slide 17: HPC Infrastructure – Speed to Market
HPC Infrastructure – Speed to Market Current Market Conditions Cipher Advantages • Scarcity of Powered Capacity • Readily Available Large Suitable Sites • Scarcity of Large Suitable Sites • Energization Timeliness Unlocks Massive • Urgency of Time to Market Value for End Users • Ability to Focus on
Slide 18: Financial Update
Financial Update
Slide 19: Q3 2024 Quarter Over Quarter Financial Highlights
Q3 2024 REVENUES Quarter Over Quarter Financial Highlights $37m $24m Q2 2024 Q3 2024 GAAP NET EARNINGS GAAP NET EARNINGS PER SHARE ($15m) ($87m) ($0.05) ($0.26) Q2 2024 Q3 2024 Q2 2024 Q3 2024 ADJUSTED EARNINGS ADJUSTED EARNINGS PER SHARE ($3m) ($3m) ($0.01) ($0.01) Q2 2024 Q3 2024 Q2 2024 Q3 2024 N
Slide 20: Q3 2024 Year Over Year Financial Highlights
Q3 2024 REVENUES Year Over Year Financial Highlights $30m $24m Q3 2023 Q3 2024 GAAP NET EARNINGS GAAP NET EARNINGS PER SHARE ($19m) ($87m) ($0.07) ($0.26) Q3 2023 Q3 2024 Q3 2023 Q3 2024 ADJUSTED EARNINGS ADJUSTED EARNINGS PER SHARE $2m ($3m) $0.01 ($0.01) Q3 2023 Q3 2024 Q3 2023 Q3 2024 Note: Value
Slide 21: Results of Operations QoQ and YoY Comparison
Results of Operations QoQ and YoY Comparison Three Months Ended Three Months Ended September 30, 2024 June 30, 2024 % Change September 30, 2024 September 30, 2023 % Change Revenue - bitcoin mining $ 24,102 $ 36,808 (35%) $ 24,102 $ 30,304 (20%) Costs and operating expenses (income) Cost of revenue 1
Slide 22: Non-GAAP Adjusted Earnings QoQ and YoY Comparison
Non-GAAP Adjusted Earnings QoQ and YoY Comparison Three Months Ended Three Months Ended September 30, 2024 June 30, 2024 % Change September 30, 2024 September 30, 2023 % Change Reconciliation of Adjusted Earnings: Net income (loss) $ (86,755) $ (15,291) (467%) $ (86,755) $ (18,621) (366%) Change in
Slide 23: Consolidated Balance Sheets
September 30, 2024 December 31, 2023 ASSETS Current assets Consolidated Cash and cash equivalents $ 25,342 $ 86,105 Accounts receivable 226 622 Receivables, related party 59 245 Balance Sheets Prepaid expenses and other current assets 3,488 3,670 Bitcoin 95,459 32,978 Derivative asset 27,185 31,878
Slide 24: Appendix
Appendix
Slide 25: Statements of Changes in Stockholders’ Equity (Deficit)
Statements of Changes in Stockholders’ Equity (Deficit) Three Months Ended September 30, 2024 Common Stock Additional Treasury Stock Total Shares Amount Paid-in Capital Accumulated Deficit Shares Amount Stockholders’ Equity Balance as of June 30, 2024 335,557,872 $ 336 $ 802,610 $ (112,168) (6,941,4
Slide 26: Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2024 2023 Cash flows from operating activities Consolidated Net loss $ (62,145) $ (36,372) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 65,661 42,284 Statement of Amortization of intangible assets 470 - Amortization of opera
Slide 27: Consolidated Statement of Cash Flows Cont.
Nine Months Ended September 30, 2024 2023 Supplemental disclosure of noncash investing and financing activities Consolidated Reclassification of deposits on equipment to property and equipment $ 21,502 $ 74,186 Property and equipment purchases in accounts payable and accrued expenses $ 17,422 $ - Bi