Slide 1: Business Update, November 14, 2022
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Slide 2: Safe Harbor
Safe Harbor • This presentation has been prepared by Cipher Mining Inc. and is made for informational purposes only. The information set forth herein does not purport to be complete or to contain all of the information you may desire. You must evaluate, and bear all risks associated with, the use of
Slide 3: Key Updates
Key Updates Highlights • Quarterly earnings of $0.24 per share validate Cipher’s resilient position as a low-cost producer Earnings • Odessa power contract valued at ~$78.9mm – Flexibility to mine bitcoin or resell power to market • Alborz – complete (~196 BTC mined in Q3; ~96 to Cipher) • Bear – co
Slide 4: Bitcoin Mining Business Model
Bitcoin Mining Business Model Power Source Mining Equipment Bitcoin Network Computing power Electricity Transaction fees Transaction processing Assignment of Electricity cost rewards Bitcoin reward Bitcoin Mining Dynamics • Data center revenue consists of a reward for the block mined and a transacti
Slide 5: Low-Cost Structure for Large Scale Mining
Low-Cost Structure for Large Scale Mining Low-Cost Scale ~$31.52 average price Up to ~7.0 EH/s per TH/s, with ~31.5 J/TH expected self-mining average efficiency(1) capacity by early 2023(3) Equipment 5-year+ PPAs with Diversified structures average power price of to optimize for lowest ~2.7 c/kWh(2)
Slide 6: Market Update
Market Update Market Timeline Implications Bitcoin Price ($USD)(1) $40,000 1 BTC Mining Distress FTX reveals liquidity crunch $35,000 $18,540 Celsius files Chapter 11 November 8 $30,000 $20,224 July 13 2 Machine Prices Continue to Plummet $25,000 – Large transactions at <$20 per TH/s $20,000 $15,000
Slide 7: Alborz ~1.3 EH/s 40 MW
Alborz (1) Alborz Operational Highlights ~1.3 EH/s (1) ~196 ~$4,571 ~4.50 40 MW BTC Mined All-in Electricity Cost Daily BTC Mining in Q3 2022 per BTC(2) Capacity(3) Operating Capacity Source: Cipher Mining management (1) Joint venture with WindHQ LLC, of which Cipher owns approximately ~0.64 EH/s (2
Slide 8: Bear & Chief ~0.3 EH/s 10 MW
Bear & Chief (1) Bear Operational Highlights Chief Operational Highlights ~0.3 EH/s ~0.3 EH/s (1) (1) ~0.90 ~1.13 10 MW Daily BTC Mining 10 MW Daily BTC Mining Capacity(2,3) Capacity(2) Operating Capacity Operating Capacity Source: Cipher Mining management (1) Joint venture with WindHQ LLC, of which
Slide 9: Significant Progress at Odessa
Significant Progress at Odessa Odessa Power Schedule October November December January February Odessa 35 MW 70 MW 105 MW 177 MW 207 MW Odessa Expected Hashrate Timeline Q4 2022E Q1 2023E Hashrate Deployed (EH/s) ~2.3 EH/s(1) ~2.6 EH/s ~4.8 EH/s Source: Cipher Mining management (1) Expected upon com
Slide 10: Cipher Mining Overview
Cipher Mining Overview Key Statistics Liquidity Profile ~$31.52 Anticipated Weighted Average Cost for Mining Rigs ($/TH/s)(1) • ~$25 million of cash as of November 9, 2022 • ~161 BTC on balance sheet on November 9, 2022 ~31.5 Anticipated Weighted Average Mining Rig Efficiency (J/TH)(1) • No burdenso
Slide 11: Consolidated Balance Sheets
Consolidated Balance Sheets September 30, December 31, 2022 2021 (unaudited) ASSETS Current assets Cash and cash equivalents $ 28,111 $ 209,841 Receivables, related party 731 - Prepaid expenses and other current assets 8,276 13,819 Cryptocurrencies 2,263 - Derivative asset 30,393 - Total current ass
Slide 12: Consolidated Statement of Operations
Consolidated Statement of Operations Nine Months Eight Months Three Months Ended September 30, Ended Ended 2022 2021 September 30, 2022 September 30, 2021 Costs and operating expenses (income) General and administrative $ 17,755 $ 2,283 $ 51,849 $ 2,942 Depreciation 11 - 26 1 Change in fair value of
Slide 13: Non-GAAP Measures
Non-GAAP Measures The following is a reconciliation of our non-GAAP loss The following are reconciliations of our non-GAAP net from operations, which excludes the impact of (i) loss and non-GAAP basic and diluted net loss per share, depreciation of fixed assets, (ii) non-cash change in fair in each
Slide 14: Appendix
Appendix
Slide 15: Statements of Changes in Stockholders' Equity (Deficit)
Statements of Changes in Stockholders’ Equity (Deficit) Three Months Ended September 30, 2022 Total Common Stock Additional Treasury Stock Accumulated Stockholders’ Shares Amount Paid-in Capital Shares Amount Deficit Equity Balance as of June 30, 2022 251,001,072 $ 251 $ 431,966 (3,511,490) $ (4) $
Slide 16: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Nine Months Ended Eight Months Ended September 30, 2022 September 30, 2021 Cash flows from operating activities Net income (loss) $ 12,574 $ (3,082) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation 26 1 Amortizatio
Slide 17: November 14, 2022
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