Tue, May 6, 1:09 PM (13 days ago)
### Cipher Mining Inc. (CIFR) Q1 2025 Financial Summary **Financial Health and Performance:** - **Revenue:** $48.96 million, up from $48.14 million in Q1 2024, driven by higher average bitcoin prices. - **Net Loss:** $38.98 million, compared to a net income of $39.90 million in Q1 2024. - **Operating Loss:** $38.09 million, compared to an operating income of $46.79 million in Q1 2024. - **Cash Flow:** $47.24 million used in operations, up from $26.64 million in Q1 2024. - **Cash Position:** $23.17 million in cash and cash equivalents, down from $5.59 million in Q1 2024. - **Stockholders' Equity:** $734.79 million, up from $681.95 million in Q1 2024. - **Accumulated Deficit:** $220.39 million, up from $181.41 million in Q1 2024. **Profit Margins:** - **Gross Margin:** Negative due to high operating expenses and depreciation. - **Operating Margin:** Negative, reflecting high costs and depreciation. **Cash Flow:** - **Operating Cash Flow:** Negative $47.24 million, impacted by net loss and changes in working capital. - **Investing Cash Flow:** Negative $17.30 million, primarily due to equipment purchases and deposits. - **Financing Cash Flow:** Positive $82.12 million, driven by stock issuances and treasury stock reissuance. **Earnings Changes:** - **Earnings per Share (EPS):** Negative $0.11, compared to positive $0.13 in Q1 2024. - **Adjusted Earnings:** Positive $6.14 million, excluding non-cash items and one-time charges. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by higher bitcoin prices, partially offset by the bitcoin halving in April 2024. - **Cost Management:** Increased costs due to higher headcount, legal fees, and SOX 404 compliance. - **Depreciation:** Increased due to new miners and equipment, and a change in useful life estimates. - **Bitcoin Sales:** $90.00 million in proceeds from bitcoin sales, used to support operations and capital expenditures. - **Financing:** $34.18 million in net proceeds from stock issuances, and $25.00 million drawn from the Coinbase Overnight Credit Facility. **Trends and Uncertainties:** - **Bitcoin Price Volatility:** Significant impact on revenue and earnings. - **Regulatory Risks:** Potential restrictions on mining operations and electricity usage. - **Operational Risks:** Dependence on the Odessa Facility and third-party suppliers. - **Market Risks:** Exposure to power price fluctuations and bitcoin price volatility. **Future Operations Impact:** - **Expansion Plans:** Continued development of data centers and high-performance computing (HPC) facilities. - **Strategic Initiatives:** Joint ventures, partnerships, and software licensing arrangements. - **Treasury Management:** Ongoing stock issuances and bitcoin sales to support cash requirements. **Material Weakness:** - **Internal Controls:** Identified material weakness in IT general controls over change management, with ongoing remediation efforts. **Conclusion:** Cipher Mining Inc. faced significant challenges in Q1 2025, with increased costs and depreciation leading to a net loss. However, the company remains focused on expansion and strategic initiatives to drive future growth. The ongoing remediation of internal controls and management of market risks will be crucial for the company's success.