Slide 1: Presentation for Business Update March 5, 2024
Presentation for Business Update March 5, 2024
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: Financial Highlights
($51.6m) Q4 2022 $10.6m Q4 2023 gaap NET earnings ($22.8m) Q4 2022 $27.8m Q4 2023 Adjusted earnings $3.0m Q4 2022 $43.4m Q4 2023 revenues 377 BTC Q4 2022 1,327 BTC Q4 2023 Btc mined(1) 1,433 BTC As of February 29, 2024 BTC Held $69.4m As of February 29, 2024 cash 7.4 EH/s As of February 29, 2024 Sel
Slide 4: Positioned to Win Through the Halving
Positioned to Win Through the Halving 30 MW expansion at each of Bear and Chief JV data centers delivering ~1.25 EH/s of self-mining capacity on track for Q2 2024 deployment Hardware and software optimization expected to add an incremental ~0.62 EH/s, expected by Q3 2024 300 MW Black Pearl data cent
Slide 5: Bitcoin Mining Business Model
Bitcoin Mining Business Model POWER SOURCE MINING EQUIPMENT BITCOIN NETWORK Data center revenue includes a reward for the block mined, transaction fees, and potential power sales(1) Average block time is 10 minutes Time for Bitcoin system to mine a new block Block reward based on ratio of data cente
Slide 6: Market Update
11 Spot Bitcoin ETFs Approved by SEC $46,143 | Jan. 10 All-Time High Hash Rate $44,319 | Feb. 8 Represents average USD market price across major bitcoin exchanges from November 1, 2023, to February 29, 2024, per blockchain.com Reflects Bitcoin network hash rate from November 1, 2023, to February 29,
Slide 7: Data Centers Update
Data Centers Update ~$8,626 All-in Electricity Cost per BTC in 2023 Odessa ~$8,579 all-in electricity cost per BTC(1) ~88% of 2023 BTC production Alborz ~$7,237 all-in electricity cost per BTC(2) ~7% of 2023 BTC production Bear & Chief ~$11,531 all-in electricity cost per BTC(3) ~5% of 2023 BTC prod
Slide 8: Operational Highlights: Odessa
Operational Highlights Reflects approximate percentage of Cipher’s February 2024 BTC production YTD through February 2024 Reflects electricity cost from 2023, including TDU charges and net of revenue generated from opportunistic power sales Assumes full up-time, February 2024 average network hashrat
Slide 9: Operational Highlights: Alborz
Operational Highlights Reflects approximate percentage of Cipher’s February 2024 BTC production Joint venture with WindHQ LLC, of which Cipher owns ~0.64 EH/s YTD through February 2024; joint venture with WindHQ LLC, of which Cipher owns ~43 BTC Reflects electricity cost from 2023, including taxes,
Slide 10: Operational Highlights: Bear & Chief
Operational Highlights Bear & Chief Reflects approximate percentage of Cipher’s February 2024 BTC production Joint venture with WindHQ LLC, of which Cipher owns ~0.32 EH/s YTD through February 2024; joint venture with WindHQ LLC, of which Cipher owns ~26 BTC Reflects combined electricity cost from 2
Slide 11: 2024 Expansion
2024 Expansion To add S21 photo
Slide 12: Financial Update
Financial Update
Slide 13: Fourth Quarter and Full Year 2023 Update
$10.6m Q4 2023 ($25.8m) 2023 gaap NET earnings $0.04 Q4 2023 ($0.10) 2023 Gaap net earnings per share $43.4m Q4 2023 $126.8m 2023 revenues 1,195 BTC Q4 2023 4,334 BTC 2023 Btc mined(1) Fourth Quarter and Full Year 2023 Update Note: Values represented are approximations Bitcoin mined figure represent
Slide 14: Consolidated Balance Sheet
December 31, 2023 December 31, 2022 ASSETS Current assets Cash and cash equivalents $ 86,105 $ 11,927 Accounts receivable 622 98 Receivables, related party 245 1,102 Prepaid expenses and other current assets 3,670 7,254 Bitcoin 32,978 6,283 Derivative asset 31,878 21,071 Total current assets 155,498
Slide 15: Consolidated Statement of Operations
Years ended December 31, 2023 2022 Revenue - bitcoin mining $ 126,842 $ 3,037 Costs and operating expenses (income) Cost of revenue 50,309 748 General and administrative 85,195 70,836 Depreciation and amortization 59,093 4,378 Change in fair value of derivative asset (26,836 ) (73,479 ) Power sales
Slide 16: Non-GAAP Measures
Years ended December 31, 2023 2022 Reconciliation of Adjusted Earnings: Net loss $ (25,777 ) $ (39,053 ) Change in fair value of derivative asset (26,836 ) (73,479 ) Share-based compensation expense 38,470 41,504 Depreciation and amortization 59,093 4,378 Deferred income tax expense 3,366 1,840 Othe
Slide 17: Appendix
Appendix
Slide 18: Statement of Changes in Stockholders' Equity
Common Stock Treasury Stock Shares Amount Additional Paid-in Capital Accumulated Deficit Shares Amount Total Stockholders’ Equity Balance as of January 1, 2022 252,131,679 $ 252 $ 425,438 $ (72,156 ) (2,852,259 ) $ (3 ) $ 353,531 Delivery of common stock underlying restricted stock units, net of sha
Slide 19: Supplemental Disclosure of Noncash Investing and Financing Activities
Supplemental disclosure of noncash investing and financing activities Reclassification of deposits on equipment to property and equipment $ 74,186 $ 105,904 Right-of-use asset obtained in exchange for finance lease liability $ 14,212 $ 14,998 Issuance of common stock in exchange for intangible asset