Slide 1: Presentation for Business Update March 14, 2023
Presentation for Business Update March 14, 2023
Slide 2: Disclaimers: Forward-Looking Statements
Disclaimers 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
Slide 3: Key Indicators as of February 28, 2023
Key Indicators as of February 28, 2023 15.59 BTC Daily Production High 465 BTC BTC Held 48,000+ Operating 398 BTC Monthly Production February 11,000+ To Be Energized Machines 5.2 EH/s Current 8.2 EH/s 2023 Potential(1) Hashrate Note: Values represented are approximations Potential growth for the 202
Slide 4: Data Centers Update
Data Centers Update Alborz – Complete ~$5,143 all-in electricity cost per BTC(1) Bear & Chief – Complete ~$6,293 all-in electricity cost per BTC(2) Odessa – Developing Capable of mining up to ~12.9 BTC daily(3) Rapid Scaling KEY UPDATES Reflects electricity cost during January 2023, including taxes,
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: Shifting BTC Mining Landscape
Notable competitor mining rig repossession $16,440 | December 20 Market Update Bitcoin price $USD(1) Implications Shifting BTC Mining Landscape Asset sales M&A Continued Network Hash Rate Growth Facilities in Demand More rigs are available than places to plug them in Current emphasis Argo sells Heli
Slide 7: Operational Highlights: Alborz
Operational Highlights Joint venture with WindHQ LLC, of which Cipher owns ~0.64 EH/s YTD through February 2023; Joint venture with WindHQ LLC, of which Cipher owns ~91 BTC Reflects electricity cost during January 2023, including taxes, customer charges, and 2021 storm surcharge; January 2023 repres
Slide 8: Operational Highlights: Bear & Chief
Operational Highlights Bear & Chief Joint venture with WindHQ LLC, of which Cipher owns ~0.32 EH/s YTD through February 2023; Joint venture with WindHQ LLC, of which Cipher owns ~54 BTC Represents expansion capacity up to 135 MW at each site; expansion capacity above 75 MW at each site is subject to
Slide 9: Operational Highlights: Odessa
Operational Highlights As of February 28, 2023 Assumes MicroBT M50 mining rigs for non-contracted, available capacity Estimated for February 2023, assumes full up-time, network hash rate of 297 EH/s and 910 bitcoins mined per day odessa Hash Rate at Full Deployment(2) ~12.9 Daily BTC Mining Capacity
Slide 10: Large Growth Opportunity – Minimal Commitment
Large Growth Opportunity – Minimal Commitment Cipher has the potential for continued hash rate growth in the near future This expansion comes without take-or-pay obligations Notes: Values represented are approximations Includes machines paid for and to be installed in 1H 2023 Assumes MicroBT M50 min
Slide 11: Managing through the Cycle
Managing through the Cycle ~$16.4 million of total cash and bitcoin as of February 28, 2023(2) Strong balance sheet without burdensome debt Purchased and fully paid for fleet of over 59,000 miners $250 million at-the-market equity shelf in place and untapped ~2.7c Anticipated Weighted Average Power
Slide 12: Financial Update
Financial Update
Slide 13: Consolidated Balance Sheet
December 31, 2022 2021 ASSETS Current assets Cash and cash equivalents $ 11,927 $ 209,841 Accounts receivable 98 - Receivables, related party 1,102 - Prepaid expenses and other current assets 7,254 13,819 Bitcoin 6,283 - Derivative asset 21,071 - Total current assets 47,735 223,660 Property and equi
Slide 14: Consolidated Statement of Operations
Year Ended Eleven Months Ended December 31, 2022 December 31, 2021 Revenue - bitcoin mining $ 3,037 $ - Costs and operating expenses (income) Cost of revenue 748 - General and administrative 70,836 72,147 Depreciation 4,378 5 Change in fair value of derivative asset (73,479 ) - Power sales (458 ) -
Slide 15: Reconciliation of non-GAAP net loss
Year Ended Eleven Months Ended December 31, 2022 December 31, 2021 Reconciliation of non-GAAP net loss: Net loss $ (39,053 ) $ (72,153 ) Non-cash adjustments to net loss: Depreciation and amortization 5,150 5 Change in fair value of derivative asset (71,758 ) - Change in fair value of warrant liabil
Slide 16: Appendix
Appendix
Slide 17: Statement of Changes in Stockholders' Equity
Total Common Stock Additional Accumulated Treasury Stock Stockholders’ Shares Amount Paid-in Capital Deficit Shares Amount Equity (Deficit) Balance as of February 1, 2021 200,000,000 $ 200 $ (200 ) $ (3 ) - $ - $ (3 ) Business Combination, net of redemptions and equity issuance costs of $40.6 millio
Slide 18: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Note: In thousands Year Ended Eleven Months Ended December 31, 2022 December 31, 2021 Cash flows from operating activities Net loss $ (39,053 ) $ (72,153 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 4,378 5 Amortizati
Slide 19: Supplemental disclosure of cash flow information
Year Ended Eleven Months Ended December 31, 2022 December 31, 2021 Supplemental disclosure of cash flow information Cash paid for interest $ - $ 27 Cash paid for income taxes, net $ - $ - Supplemental disclosure of noncash investing and financing activities Equity method investment acquired for non-