Slide 1: Presentation for Business Update May 9, 2023
Presentation for Business Update May 9, 2023
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: Prudent Growth through the Cycle
Prudent Growth through the Cycle Deployed fleet of over 59,000 miners Purchased an additional 11,000 miners to complete the Odessa buildout in Q3 Evaluating potential expansion plans at Bear and Chief data centers as well as other new opportunities ~2.7c Anticipated Weighted Average Power Price (c/k
Slide 4: Key Indicators as of April 30, 2023
Key Indicators as of April 30, 2023 16.44 BTC Daily Production High 427 BTC BTC Held 59,000+ Operating 406 BTC Monthly Production April 70,000+ Expected Q3 2023 Machines 6.0 EH/s Current 8.2 EH/s 2023 Potential(1) Hashrate Note: Values represented are approximations Potential growth for the 2023 cal
Slide 5: Cipher Mining's Business Model
Cipher Mining’s Business Model At certain sites, Cipher can opportunistically elect to use power at data center or sell to the market The block reward is cut in half after every 210,000 blocks are mined (~every 4 years); the latest revision was in May 2020 POWER SOURCE MINING EQUIPMENT BITCOIN NETWO
Slide 6: Market Update
Market Update (1) Represents average USD market price across major Bitcoin exchanges from March 1, 2023, to April 30, 2023, per data.nasdaq.com Bitcoin price $USD(1) Implications Bitcoin Rally – Flight to Safe Haven Rapidly Evolving Regulatory Landscape Buyer’s Market for Rigs Current emphasis Signa
Slide 7: Data Centers Update
Data Centers Update Alborz – Complete ~$6,747 all-in electricity cost per BTC(1) Bear & Chief – Complete ~$5,927 all-in electricity cost per BTC(2) Odessa – Completion Expected Q3 2023 ~$7,309 all-in electricity cost per BTC(3) Capable of mining up to ~13.6 BTC daily(4) Rapid Scaling KEY UPDATES Ref
Slide 8: Operational Highlights Alborz
Operational Highlights Joint venture with WindHQ LLC, of which Cipher owns ~0.64 EH/s YTD through April 2023; Joint venture with WindHQ LLC, of which Cipher owns ~157 BTC Reflects electricity cost during March 2023, including taxes, customer charges, and 2021 storm surcharge; March 2023 represents t
Slide 9: Operational Highlights Bear & Chief
Operational Highlights Bear & Chief Joint venture with WindHQ LLC, of which Cipher owns ~0.32 EH/s YTD through April 2023; Joint venture with WindHQ LLC, of which Cipher owns ~98 BTC Represents expansion capacity up to 135 MW at each site; expansion capacity above 75 MW at each site is subject to ER
Slide 10: Operational Highlights Odessa
Operational Highlights As of April 30, 2023 Reflects electricity cost during March 2023, including TDU charges and net of revenue generated from opportunistic power sales; March 2023 represents the latest electricity bills received Estimated for April 2023, assumes full up-time, network hash rate of
Slide 11: Optimization Case Study Odessa
Optimization Case Study odessa Curtailment at Odessa Optimizing for Increased Profitability Foregone Mining Energy Spread(3) ~$41,193 Opportunistic Energy Monetization(4) ~$145,635 Bitcoin Mining Revenue(2) PPA Fixed Price Open Market Power Prices When Curtailed When Self-Curtailed Power prices per
Slide 12: Financial Update
Financial Update
Slide 13: Balance Sheet March 31, 2023
March 31, 2023 December 31, 2022 (unaudited) ASSETS Current assets Cash and cash equivalents $ 3,922 $ 11,927 Accounts receivable 281 98 Receivables, related party 1,291 1,102 Prepaid expenses and other current assets 4,279 7,254 Bitcoin 9,576 6,283 Derivative asset 17,129 21,071 Total current asset
Slide 14: Statement of Operations, Three Months Ended March 31, 2023
Three Months Ended March 31, 2023 2022 Revenue - bitcoin mining $ 21,895 $ - Costs and operating expenses (income) Cost of revenue 8,141 - General and administrative 17,420 17,390 Depreciation 11,655 7 Change in fair value of derivative asset (5,328 ) - Power sales (98 ) - Equity in losses of equity
Slide 15: Reconciliation of non-GAAP net income (loss)
Three Months Ended March 31, 2023 2022 Reconciliation of non-GAAP net income (loss): Net loss $ (6,601 ) $ (17,499 ) Non-cash adjustments to net loss: Depreciation and amortization 11,877 7 Change in fair value of derivative asset (5,328 ) - Share-based compensation expense 8,810 9,514 Other gains -
Slide 16: Appendix
Appendix
Slide 17: Statements of Changes in Stockholders' Equity (Deficit)
Statements of Changes in Stockholders’ Equity (Deficit) Note: In thousands, except for share amounts Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Common Stock Additional Accumulated Treasury Stock Total Shares Amount Paid-in Capital Deficit Shares Amount Stockholders’ Equity B
Slide 18: Statement of Cash Flows, Three Months Ended March 31, 2023
Three Months Ended March 31, 2023 2022 Cash flows from operating activities Net loss $ (6,601 ) $ (17,499 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 11,655 7 Amortization of operating right-of-use asset 222 140 Share-based compensation 8,