Cipher Digital Inc. · NASDAQ:CIFR

Cipher Digital — Q1 2024 Earnings Presentation

23 slides from Cipher Digital's earnings presentation, May 7, 2024

  1. Slide 1: Presentation for Business Update

    Presentation for Business Update MAY 7, 2024

  2. 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

  3. Slide 3: First Quarter 2024 Update

    First Quarter 2024 Update REVENUES GAAP NET EARNINGS ADJUSTED EARNINGS $43m $48m $11m $40m $28m $63m Q4 2023 Q1 2024 Q4 2023 Q1 2024 Q4 2023 Q1 2024 $96m 2,033 BTC 7.7 EH/s Cash(1) BTC Held(1) Self-Mining Hash Rate (1) Note: Values represented are approximations (1) As of April 30, 2024 3

  4. Slide 4: Built to Succeed and Positioned to Win

    Built to Succeed and Positioned ~2.7c 96% to Win Anticipated of Cipher’s Post-Halving Weighted Average Portfolio Energized Power Price Through Fixed (c/kWh)(1) Price Power ~29.0 J/TH ~22.0 J/TH Current Operating 2025 Expected Fleet Fleet Efficiency Efficiency(2) (1) Represents the expected weighted

  5. Slide 5: Bear & Chief Expansions

    Bear & Chief Expansions 30 MW Expansion at Each of Bear and Chief JV Data Centers • Delivering ~1.25 EH/s of self-mining hash rate for Cipher • Full energization on track for Q2 2024

  6. Slide 6: Odessa Timeline Comparison

    Odessa Timeline Comparison Odessa Data Center Odessa Data Center Pre-Construction November 2022 14 Months 6

  7. Slide 7: Black Pearl Expansion

    Black Pearl Expansion Black Pearl Data Center Construction Commenced • Delivering 300 MW of total capacity • Full energization expected in 2025

  8. Slide 8: Black Pearl Facility 3D Rendering

    Black Pearl Facility 3D Rendering

  9. Slide 9: Bitcoin Mining Business Model

    Bitcoin Mining Business Model POWER SOURCE MINING EQUIPMENT BITCOIN NETWORK Computing Power Transaction Electricity Processing Transaction Fees Electricity Cost Assignment Bitcoin Reward of Rewards Bitcoin Mining Dynamics Data center Average block Block reward Current block Transaction revenue inclu

  10. Slide 10: Market Update

    Market Update BTC PRICE & NETWORK HASH RATE(1,2) 1 The Halving has Passed $80,000 770 All-Time High All-Time High Bitcoin Price Hash Rate $73,094 | Mar. 14 $63,824 | Apr. 20 Network Hash Rate (EH/s) $72,500 698 2 Supply/Demand Imbalance Bitcoin Price Incoming? $65,000 625 $57,500 553 Bitcoin Surpass

  11. Slide 11: Key Updates

    KEY UPDATES ~566 MW Data Centers Update Steady Scaling ~$11,912 All-in Electricity Cost per BTC in Q1 ‘24 Anticipated Power Capacity & Hash Rate Growth Odessa ~266 MW ~266 MW ~236 MW ~$11,892 all-in electricity cost per BTC(1) ~90% of Q1 ‘24 BTC production Alborz Current 2Q24E 3Q24E 2025 ~$11,234 al

  12. Slide 12: Operational Highlights - Odessa

    ODESSA Operational Highlights Odessa – 90% of BTC Production(1) ~6.7 EH/s 207 MW Operating Operating Hash Rate Power Capacity ~$11,892 ~1,183 BTC All-in Electricity BTC Mined Cost per BTC(2) YTD(3) (1) Reflects approximate percentage of Cipher’s April 2024 BTC production (2) Reflects electricity cos

  13. Slide 13: Operational Highlights - Alborz

    ALBORZ Operational Highlights Alborz – 7% of BTC Production(1) ~1.3 EH/s 40 MW Operating Operating Hash Rate(2) Power Capacity ~$11,234 ~168 BTC All-in Electricity BTC Mined Cost per BTC(3) YTD(4) (1) Reflects approximate percentage of Cipher’s April 2024 BTC production (2) Joint venture with WindHQ

  14. Slide 14: Operational Highlights - Bear & Chief

    BEAR & CHIEF Operational Highlights Bear & Chief – 3% of BTC Production(1) ~0.7 EH/s 20 MW Operating Operating Hash Rate(2) Power Capacity ~$13,546 ~96 BTC All-in Electricity BTC Mined Cost per BTC(3) YTD(4) (1) Reflects approximate percentage of Cipher’s April 2024 BTC production (2) Joint venture

  15. Slide 15: Financial Update

    Financial Update

  16. Slide 16: Financial Highlights – Quarter Over Quarter

    Financial Highlights – Quarter Over Quarter REVENUES COMPENSATION & BENEFITS + G&A $43m $48m $23m $19m Q4 2023 Q1 2024 Q4 2023 Q1 2024 GAAP NET EARNINGS GAAP NET EARNINGS PER SHARE $11m $40m $0.04 $0.13 Q4 2023 Q1 2024 Q4 2023 Q1 2024 ADJUSTED EARNINGS ADJUSTED EARNINGS PER SHARE $28m $63m $0.11 $0.

  17. Slide 17: Financial Highlights – Year Over Year

    Financial Highlights – Year Over Year REVENUES COMPENSATION & BENEFITS + G&A $22m $48m $17m $19m Q1 2023 Q1 2024 Q1 2023 Q1 2024 GAAP NET EARNINGS GAAP NET EARNINGS PER SHARE ($5m) $40m ($0.02) $0.13 Q1 2023 Q1 2024 Q1 2023 Q1 2024 ADJUSTED EARNINGS ADJUSTED EARNINGS PER SHARE $8m $63m $0.03 $0.21 Q

  18. Slide 18: Results of Operations QoQ and YoY Comparison

    Results of Operations QoQ and YoY Comparison Three Months Ended Three Months Ended March 31, 2024 December 31, 2023 % Change March 31, 2024 March 31, 2023 % Change Revenue - bitcoin mining $ 48,137 $ 43,419 11% $ 48,137 $ 21,895 120% Costs and operating expenses (income) Cost of revenue 14,820 13,29

  19. Slide 19: Non-GAAP Adjusted Earnings QoQ and YoY Comparison

    Non-GAAP Adjusted Earnings QoQ and YoY Comparison Three Months Ended Three Months Ended March 31, 2024 December 31, 2023 % Change March 31, 2024 March 31, 2023 % Change Reconciliation of Adjusted Earnings: Net income (loss) $ 39,900 $ 10,595 277 % $ 39,900 $ (4,553) (976)% Change in fair value of de

  20. Slide 20: Consolidated Balance Sheets

    Consolidated March 31, 2024 December 31, 2023 (unaudited) ASSETS Current assets Balance Sheets Cash and cash equivalents Accounts receivable Receivables, related party $ 88,675 680 430 $ 86,105 622 245 Prepaid expenses and other current assets 2,910 3,670 Bitcoin 123,307 32,978 Derivative asset 34,2

  21. Slide 21: Appendix

    Appendix

  22. Slide 22: Statements of Changes in Stockholders’ Equity

    Statements of Changes in Stockholders’ Equity (Deficit) Three Months Ended March 31, 2024 Common Stock Additional Accumulated Treasury Stock Total Shares Amount Paid-in Capital Deficit Shares Amount Stockholders’ Equity Balance as of December 31, 2023 296,276,536 $ 296 $ 627,822 $ (136,777) (5,318,6

  23. Slide 23: Consolidated Statement of Cash Flows

    Consolidated Three months ended March 31, 2024 2023 Cash flows from operating activities Statement of 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 1

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