Slide 1: Presentation for Business Update November 8, 2023
Presentation for Business Update November 8, 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: Positioned to Win – Growing Through the Cycle
Positioned to Win – Growing Through the Cycle Signed agreement to acquire a Texas-based greenfield site with a conditional ERCOT interconnection approval for up to 300 MW, called “Black Pearl” Purchased 1.2 EH/s of Bitmain’s newest generation S21 rigs for $14/TH Continued progress on grid connection
Slide 4: Key Indicators as of October 31, 2023
Key Indicators as of October 31, 2023 14.9 BTC Daily Production Capacity(2) 516 BTC BTC Held 4,032 BTC Year to Date Production 428 BTC Monthly Production October 7.2 EH/s Current 23.5 EH/s 2025 Potential(1) Self-Mining Hash rate Note: Values represented are approximations Assumes a PUE of 1.05 and a
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
Is an ETF coming? Continued Network Hash Rate Growth Shifting Landscape for Mining Rigs? Represents average USD market price across major bitcoin exchanges from August 1, 2023, to October 31, 2023, per data.nasdaq.com Reflects Bitcoin network hash rate from August 1, 2023, to October 31, 2023, per b
Slide 7: Data Centers Update
Data Centers Update ~$8,379 Weighted Avg. Electricity Cost per BTC(1) Odessa ~$8,390 all-in electricity cost per BTC(2) 90% of BTC production(3) Alborz ~$6,794 all-in electricity cost per BTC(4) 6% of BTC production(3) Bear & Chief ~$10,448 all-in electricity cost per BTC(5) 4% of BTC production(3)
Slide 8: Operational Highlights – Odessa
Operational Highlights Reflects approximate percentage of Cipher’s October BTC production YTD through October 2023 Reflects electricity cost from January to September 2023, including TDU charges and net of revenue generated from opportunistic power sales; September 2023 represents the latest electri
Slide 9: Operational Highlights – Alborz
Operational Highlights Reflects approximate percentage of Cipher’s October BTC production Joint venture with WindHQ LLC, of which Cipher owns ~0.64 EH/s YTD through October 2023; joint venture with WindHQ LLC, of which Cipher owns ~295 BTC Reflects electricity cost from January to September 2023, in
Slide 10: Operational Highlights – Bear & Chief
Operational Highlights Bear & Chief Reflects approximate percentage of Cipher’s October BTC production Joint venture with WindHQ LLC, of which Cipher owns ~0.32 EH/s YTD through October 2023; joint venture with WindHQ LLC, of which Cipher owns ~206 BTC Reflects combined electricity cost from January
Slide 11: Financial Update
Financial Update
Slide 12: Balance Sheet – September 30, 2023
September 30, 2023 December 31, 2022 (unaudited) ASSETS Current assets Cash and cash equivalents $ 3,342 $ 11,927 Accounts receivable 360 98 Receivables, related party - 1,102 Prepaid expenses and other current assets 3,962 7,254 Bitcoin 13,667 6,283 Derivative asset 33,087 21,071 Total current asse
Slide 13: Statements of Operations
Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue - bitcoin mining $ 30,304 $ - $ 83,423 $ - Costs and operating expenses (income) Cost of revenue 13,008 - 37,017 - General and administrative 23,898 17,755 62,653 51,849 Depreciation 16,217 11 42,284 26 Chan
Slide 14: Reconciliation of Non-GAAP Net Income (Loss)
Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Reconciliation of non-GAAP net income (loss): Net (loss) income $ (17,711 ) $ 59,292 $ (37,013 ) $ 12,574 Non-cash adjustments to net (loss) income: Depreciation and amortization 16,453 11 42,972 26 Change in fair v
Slide 15: Appendix
Appendix
Slide 16: Statements of Stockholders' Equity
Common Stock Additional Accumulated Treasury Stock Total Shares Amount Paid-in Capital Deficit Shares Amount Stockholders’ Equity Balance as of June 30, 2022 251,001,072 $ 251 $ 431,966 $ (118,874 ) (3,511,490 ) $ (4 ) $ 313,339 Delivery of common stock underlying restricted stock units, net of shar
Slide 17: Statements of Cash Flows
Nine Months Ended September 30, 2023 2022 Cash flows from operating activities Net (loss) income $ (37,013 ) $ 12,574 Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 42,284 26 Amortization of operating right-of-use asset 688 556 Share-based comp