Slide 1: Good Works March 2021
March 2021 Good Works
Slide 2: Legal Disclaimer
2 Legal Disclaimer This presentation (the "presentation") has been prepared for use by Good Works Acquisition Corp. ("Good Works") and Cipher Mining Technologies Inc. ("Cipher" or the "Company") in connection with their proposed business combination (the "proposed business combination"). This presen
Slide 3: Use of Data and Additional Information
3 USE OF DATA The data contained herein is derived from various internal and external sources. No representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of any projections or modeling or any other information contained herein. Any data on past
Slide 4: Transaction Summary
4 Transaction Summary Transaction highlights x $2,000mm implied enterprise value at $10 per share x 2.6x 2023E EBITDA or 3.4x 2023E FCF (25k - 100k case) (1) x 4.3x 2023E EBITDA or 7.4x 2023E FCF (25k - 50k case) (2) x 5.4x 2023E EBITDA or 11.2x 2023E FCF (25k flat case) (3) x 6.7x 2023E EBITDA or 1
Slide 5: Transaction Summary
5 Transaction Summary Transaction highlights x $2,000mm implied enterprise value at $10 per share x 2.6x 2023E EBITDA or 3.4x 2023E FCF (25k - 100k case) (1) x 4.3x 2023E EBITDA or 7.4x 2023E FCF (25k - 50k case) (2) x 5.4x 2023E EBITDA or 11.2x 2023E FCF (25k flat case) (3) x 6.7x 2023E EBITDA or 1
Slide 6: Cipher Mining Leadership Team
6 Cipher Mining Leadership Team Tyler Page Chief Executive Officer Samy Biyadi Interim Head of Power Patrick Kelly Chief Operating Officer Ed Farrell Chief Financial Officer
Slide 7: Bitfury is Creating Cipher Mining, a New Bitcoin Mining Champion
7 Bitfury is Creating Cipher Mining, a New Bitcoin Mining Champion 745 MW By 2025E EOY Largest global Bitcoin mining operation 9% 2025E Global Bitcoin Network Hashrate (1) Significant scale versus competition Expected steady cash flows generated via Bitcoin rewards and transaction fees 21k+ Bitcoin
Slide 8: Bitfury Snapshot
8 Bitfury Snapshot Bitfury Today $170MM+ Capital Raised >600k Bitcoins Mined Since Inception 7 Data Centers 500MW+ Computing Power Deployed to Date 7 ASICs Generations 5 Countries (Mining Operation) 50 R&D Employees 120+ Employees Key highlights Bitfury Main Activities Source: Cipher Mining manageme
Slide 9: Investment Opportunity Overview
9 Investment Opportunity Overview Transaction Perimeter Source: Cipher Mining management (1) Subject to LOI Transaction funds buildout of 4 new data centers in the United States • Greenfield projects are ready - for - deployment with lease agreements and power purchase agreements (1) • 445 MW initia
Slide 10: Key Partnerships Drive Industry-Leading Execution
10 Key Partnerships Drive Industry - Leading Execution Site development oversight and management Exclusive development of US assets (non - compete) (1) Pool services agreement Power Procurement Texas 1 & 3 5 year power supply arrangements Texas 2 5 year power supply arrangements Ohio 5 year power su
Slide 11: Business Model Overview
11 Business Model Overview Source: Cipher Mining management (1) Range represents BTC price increase from $25K in 2021E to $50K or $100K in 2025E (2) The block reward is cut in half after every 210,000 blocks are mined (~every 4 years); the latest revision was in May 2020 Bitcoin Network Power Source
Slide 12: Growing Bitcoin Acceptance Among Institutions
12 “ There is no other asset that combines Bitcoin’s liquidity with its upside potential” “ Fidelity has made a long - term commitment to the future of blockchain technology and to making digitally - native assets, such as Bitcoin, more accessible to investors ” Growing Bitcoin Acceptance Among Inst
Slide 13: Favorable Market Dynamics Could Push Market Cap to ~$2T+
13 …and Favorable Market Dynamics Could Push Market Cap to ~$2T+ Source: Cipher Mining management, Wall Street research, Coin Metrics Note: Bitcoin market data as of 2/8/21 (1) Denotes market capitalization at 12/31/21 and 12/31/25 using year end 2021E and 2025E BTC price; (2) Assumes BTC price incr
Slide 14: Investment Highlights for Cipher Mining
14 Investment Highlights for Cipher Mining Note: Projections based upon BTC increases from $25k to $ 50 k from 2021E to 2025E; assumes 455 EH/s network hashrate by Dec 2025E; assumes 2.38 BTC transaction fees per block by Dec 2025E; assumes 745MW deployed by Dec 2025E (1) Subject to LOI (2) Cipher w
Slide 15: Creation of US Bitcoin Mining Champion
15 445 MW 745 MW 235 MW 335 MW 100 MW 154 MW 120 MW 109 MW 20 MW 1,135 MW 835 MW 500 MW 367 MW Creation of US Bitcoin Mining Champion 1 Mining Capacity of World’s Largest Bitcoin Miners (MW) Cipher Mining’s share in the overall computational power of Bitcoin network is expected to be 9% (2) by Decem
Slide 16: Strong Position on the Global Cost Curve
16 Strong Position on the Global Cost Curve 2 Low Electricity Costs Relative to Peers ($/MWh) Positioned to be Industry Leader in Equipment Efficiency Source: Cipher Mining management, Cambridge Centre for Alternative Finance, and company filings (1) Cost for initial buildout, subject to LOI; (2) Co
Slide 17: Technology Leadership Delivers Best-in-Class Performance
17 Technology Leadership Delivers Best - in - Class Performance 3 Proprietary High - Performance Equipment and Breakthrough Technologies Source: Cipher Mining management (1) Management estimate based on publicly available sources • Running data centers in regions with attractive energy prices, but h
Slide 18: Partnership with Bitfury Provides Access to Next-Gen ASIC Chips
18 Partnership with Bitfury Provides Access to Next - Gen ASIC Chips 3 Source: Cipher Mining management 1 2 3 4 5 6 7 8 GEN1 GEN2 GEN3 GEN4 GEN5 GEN6 GEN7 GEN8 ASIC 55 nm (2013) ASIC 55 nm/G2 (2014) ASIC 28nm (2015) ASIC 16nm (2016) ASIC 14nm (2017) ASIC 14nm/G2 (2018) “CLARKE” ASIC 10nm (2019) “GIB
Slide 19: NIVEN Deployment Timeline
19 NIVEN Deployment Timeline Anticipated Schedule Event Tape Out March 2021E Engineering Sample / Pilot Production June / July 2021E Mass Production SOP in Q3 2021E Ramp - up Phase Volume (wafer) Engineering Sample 50…100 Pilot Production Up to 2,000 Mass Production Depending on forecast Production
Slide 20: Unique Track Record of Execution
20 Unique Track Record of Execution 4 Source: Cipher Mining management Bitfury Is Among the Most Experienced Providers of Digital Infrastructure Solutions Globally • Large team of engineers covering electrical, mechanical and civil trades • Prolific experience in deploying large data centers and ope
Slide 21: Bitfury's Track Record of Large-Scale Data Center Development
21 Bitfury’s Track Record of Complex and Large - Scale Data Center Development 5 Proven Ability To Scale Quickly 32 MW Iceland & Georgia 76 MW Iceland & Georgia + Immersion Cooling 134 MW Iceland, Georgia and Canada 526 MW Iceland, Georgia, Canada, Azerbaijan, Norway and Kazakhstan Source: Cipher Mi
Slide 22: Strategic Adjacencies Present Long-Term Opportunities
22 Strategic Adjacencies Present Compelling Long - Term Opportunities Source: Cipher Mining management Industry Tailwinds x Available supply of Bitcoin is shrinking as more is being bought than mined x Bitcoin is becoming more of its own asset class and less of a “cryptocurrency” x Institutional inv
Slide 23: Cipher Mining Data Center Economics and Implementation
Cipher Mining Data Center Economics and Implementation
Slide 24: Cipher Mining Expected Timeline and Details
24 Cipher Mining Expected Timeline and Details Investment in Initial Buildout Source: Cipher Mining management Note: Assumes initial buildout to begin December 1, 2021E Site name Q4 ’21E Q1 ’22E Q2 ’22E Q3 ’22E Q4 ’22E Texas site 1 Ohio Texas site 2 Texas site 3 Additional Investment - Cumulative Gr
Slide 25: Illustrative Simulation of Cipher's 745 MW Miner Economics
25 5,382 3,494 2,160 1,970 $25K to $12.5K Flat $25K $25K to $50K $25K to $100K Illustrative Simulation of Cipher’s 745 MW Miner Economics Bitcoin Network Computational Power vs. BTC Price (1) Source: Cipher Mining management and Coin Metrics Note: Bitcoin market data from 1/1/20 to 2/8/21 (1) Hash R
Slide 26: Cipher Mining Financial Overview
Cipher Mining Financial Overview
Slide 27: Financial Highlights
27 Financial Highlights Source: Cipher Mining management Note: Based upon BTC price increases from $25k to $50k from 2021E to 2025E; EBITDA is a non - GAAP financial measure; EBITDA defined as net earnings (loss) before interest expense, income tax expense (benefit), depreciation and amortization; E
Slide 28: Illustrative Key Performance Indicators
28 Illustrative Key Performance Indicators, with BTC from $25K to $50K Illustrative Average Cost per Bitcoin Mined (1) Illustrative Annual Bitcoin Mined Illustrative Total MW Deployed and Hashrate (EH/s) Illustrative Gross Margin Source: Cipher Mining management Note: Projections based upon BTC incr
Slide 29: Illustrative Selected Financial Projections
29 Illustrative Selected Financial Projections, with BTC from $25K to $50K Illustrative Revenue and Gross Profit ($ in millions) Illustrative EBITDA and Capex ($ in millions) ($5) $237 $465 $502 $761 $494 $134 $194 $229 $259 43% 58% 54% 66% 2021E 2022E 2023E 2024E 2025E EBITDA Capex FCF Conversion S
Slide 30: Strong Return on Capital Investment
30 Strong Return on Capital Investment Source: Cipher Mining management Note: Projections based upon BTC increases from $25k to $50k from 2021E to 2025E; assumes 455 EH/s network hashrate by Dec 20 25E ; assumes 2.38 BTC transaction fees per block by Dec 2025E; assumes 745MW deployed by Dec 2025E; E
Slide 31: Model Sensitivities to Bitcoin Price Movements
31 Model Sensitivities to Bitcoin Price Movements Source: Cipher Mining management Note: Projections based upon BTC increases from $25k to $50k from 2021E to 2025E; assumes 455 EH/s network hashrate by Dec 20 25E ; assumes 2.38 BTC transaction fees per block by Dec 2025E; assumes 745MW deployed by D
Slide 32: Projected EBITDA Growth Outpaces Bitcoin Price
32 Cipher’s Projected EBITDA Growth Outpaces Bitcoin Price in Both Upside and Downside Bitcoin Price Scenarios Case 1: Bitcoin $25k - $50k Bitcoin price 13% Cipher EBITDA 48% Case 2: Bitcoin $25k - $12.5k Source: Cipher Mining management Assumes Bitcoin price increases linearly from $25k to $50k fro
Slide 33: Strong Return and Downside Protection
33 0% 50% 100% 150% 200% 250% 300% Y1 Y2 Y3 Y4 Y5 0% 100% 200% 300% 400% 500% Y1 Y2 Y3 Y4 Y5 Strong Return and Downside Protection Source: Cipher Mining management Note: EBITDA is a non - GAAP financial measure (1) Return calculated as cumulative EBITDA / Capex for respective year, EBITDA defined as
Slide 34: Investment Highlights for Cipher Mining
34 Investment Highlights for Cipher Mining Source: Cipher Mining management A ssumes 745MW deployed by Dec 2025E (1) Subject to LOI (2) Cipher Mining will be a separate company , Bitfury results may not be indicative of Cipher Mining results 1 Creation of U.S. Bitcoin Mining Champion 745 MW Planned
Slide 35: Cipher Mining Appendix
Cipher Mining Appendix
Slide 36: Bitfury Group Leadership, Investors and Advisory Board
36 Antoine Dresch Board of Directors member Valery Vavilov Founder & CEO Bitfury Team and Investors The Bitfury Group — Leadership Investors The Bitfury Group — Advisory Board Dr. James Newsome Co - founder at Delta Strategy Group, former U.S. CFTC Chairman Dr. Jackson Hu Advisor for high - tech sta
Slide 37: Bitfury History Timeline
37 2010 2009 “Genesis” Bitcoin block mined Bitfury founded 2011 2012 Bitfury deploys FPGA platforms to process Bitcoin transactions Deployed 1 st generation ASIC (55nm) 2013 2014 Deployed 3 rd generation ASIC (28nm) Opened state of the art 40 MW immersion cooling datacenter Acquired Hong Kong based
Slide 38: Growing Institutional Appetite for Bitcoin
38 0% 20% 40% 60% 80% 100% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Shares of BTC Outstanding % of BTC's Supply Held For More Than 1 Year % of BTC's Supply Held For Less Than 1 Year Growing Institutional Appetite for Bitcoin… Rising Adoption From Investors looking to Diversify Portfoli
Slide 39: Upside from Corporate and Institutional Interest
39 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 1% Allocation 2.55% Allocation (Minimum Volatility) 6.55% Allocation (Maximum Sharpe Ratio) Price Increase per Bitcoin HNWI Mass Affluent Pension Funds Insurance Companies Sovereign Wealth Funds $0 $50,000 $100,000 $150,000 $200,000 $250,00
Slide 40: The Market is Ready for a North American Asset
40 Canada 613MW Russia 465MW Iceland 165MW Rest of World 91MW Kazakhstan 455MW Iran 450MW US 1,116MW China 731MW Source: Cipher Mining management and BitOoda (1) Based on ‘Bitcoin Mining Hashrate and Power Analysis’ (July 2020) from BitOoda Known Capacity Distribution per July 2020 (1) Increasing In
Slide 41: Projections Overview
41 Projections Overview Source: Cipher Mining management (1) Subject to LOIs; (2) Subject to certain de minimis thresholds; (3) Free Cash Flow = EBITDA – Capex, EBITDA defined as net earnings (loss) before interest expense, income tax expense (benefit), depreciation and amortization Creation of the
Slide 42: Mining Costs Overview
42 Mining Costs Overview Category Description Indicative Amount Mining Equipment Primary capex cost ; used for purchasing equipment and high - efficiency ASIC - powered Bitcoin miners (includes taxes and duties) $962k / MW Infrastructure New site infrastructure build out, including substations, tran
Slide 43: Expected Increasing Importance of Transaction Fees
43 Expected Increasing Importance of Transaction Fees Source: Cipher Mining management Note: Projections based upon BTC increases from $25k to $50k from 2021E to 2025E; assumes 455 EH/s network hashrate by Dec 20 25E ; assumes 2.38 BTC transaction fees per block by Dec 2025E; assumes 745MW deployed
Slide 44: Significant Upside from Additional Capex Deployment
44 Additional MW from $50M Investment 38.3 35.2 28.3 23.6 20.2 Additional Hashrate from $50M Investment (EH/s) 1.3 1.1 1.4 1.6 1.7 ($34.6) $34.8 $33.2 $23.8 $24.7 ($40.0) $29.1 $20.6 $21.5 ($33.6) $30.2 $31.2 ($37.3) $37.0 ($31.2) ($5.2) $28.7 $37.3 $83.2 2021E 2022E 2023E 2024E 2025E Significant Up
Slide 45: Projected Financials - BTC Price from $25K to $50K
45 Projected Financials – BTC Price from $25K to $50K ( $ in millions ) Year ending December 31 2021E 2022E 2023E 2024E 2025E Initial Investment Revenue $6 $350 $524 $412 $422 Additional Investment Revenue 0 0 128 303 586 Total Revenue $6 $350 $652 $714 $1,009 % Growth 5418.0% 86.1% 9.6% 41.2% Initi
Slide 46: Cipher Mining Appendix: Bitcoin Mining
Cipher Mining Appendix: Bitcoin Mining 101
Slide 47: Key Terms
47 Bitcoin – a decentralized, permission - less digital currency in which new units are generated by computational solution of mathematical problems Blockchain - a data system in which transactions are stored on a peer - to - peer digital ledger and based upon cryptographic engagement Block - Bitcoi
Slide 48: What is Bitcoin?
48 What is Bitcoin? Bitcoin Overview • Bitcoin is a digital commodity invented in January 2009 by an unknown person under the pseudonym of Satoshi Nakamoto • By 2025E, Bitcoin is expected to surpass gold’s annual stock to flow ratio (commodity’s current stock divided by flow of new pro duction) • Go
Slide 49: Bitcoin Mining, Explained
49 Bitcoin Mining, Explained Pooled blocks of Bitcoin transactions are encrypted by cryptography Upon block formation, miners allocate computational resources to solve the mathematical algorithm Solved blocks of transactions are verified by the peer - to - peer Bitcoin network New transaction block
Slide 50: Bitcoin Mining Economics
50 Bitcoin Mining Economics Mining Difficulty, Bitcoin Price Mining Hardware Expense Political and Regulatory Acceptance Scale and Bolt - on Ability Electricity Source and Data Center Efficiency Performance Monitoring Software Driven by miner’s hash rate as a fraction of the overall network 6.25 Bit
Slide 51: How Miners Add Blocks to the Blockchain
51 New transactions are broadcast to the network Economically - motivated miners select transactions with the highest fees to construct potential blocks Miners work in competition to solve the cryptographic puzzle, spending electricity and time to find the solution via brute force guessing (hashing)
Slide 52: Hash Rate and Network Dynamics
52 Hash Rate and Network Dynamics The processing power of the Bitcoin network is expressed in Hash Rate (hashes, or calculations, per second or H/s) Hash rate is often measured in Exa hashes per second (EH/s) or Tera hashes per second (TH/s) A new block of transactions (a Block Reward) is created ev
Slide 53: Halving Drives Bitcoin Scarcity
53 • Following each halving, Bitcoin miners receive half the Bitcoin per block mined • Halving will occur until 2140, when Bitcoin outstanding will reach its maximum of 21 million • Bitcoin mining block rewards have halved twice prior to May 2020, in 2012 and 2016, each seeing significant price appr
Slide 54: Stock-to-Flow Model a Reflection of BTC Price Trajectory
54 $0.10 $1.00 $10.00 $100.00 $1,000.00 $10,000.00 $100,000.00 $1,000,000.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Stock - to - Flow Model a Reflection of BTC Price Trajectory S2F Model (15 month S2F ratio) S2F Multiple (BTC price / S2F model) BTC (USD) 50 M
Slide 55: What to Look for in a Bitcoin Mining Project
55 What to Look for in a Bitcoin Mining Project Factor Role Power Cost As the largest mining cost, electricity price drives project competitiveness Operator/ Management Bitcoin mining datacenters vary significantly from traditional datacenters, and market nuances vary by region Jurisdiction Regulato