Cipher Mining Reports Revenue Decline, Increased Costs, and Strategic Investments in Latest Quarter

Cipher Mining Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Cipher Mining generated revenue of $24.1 million from bitcoin mining, a decrease from $30.3 million in the same period in 2023. The decline was attributed to the bitcoin halving event in April 2024, which reduced the reward for mining a block from 6.25 to 3.125 bitcoin, despite a rise in bitcoin prices. However, for the nine months ended September 30, 2024, revenue increased to $109.0 million from $83.4 million year-over-year, primarily due to higher bitcoin prices.

Total costs and operating expenses surged to $115.5 million for the three months ended September 30, 2024, compared to $49.4 million in the prior year, and $169.8 million for the nine months, up from $118.7 million. This increase was driven by higher depreciation expenses, which rose significantly due to a change in the estimated useful life of miners, and additional costs related to fleet upgrades.

The company reported an operating loss of $91.4 million for the third quarter of 2024, compared to a loss of $19.1 million in the same quarter of 2023. For the nine-month period, the operating loss was $60.8 million, up from $35.3 million. The net loss for the three months ended September 30, 2024, was $86.8 million, compared to $18.6 million in the prior year, while the nine-month net loss increased to $62.1 million from $36.4 million.

In terms of strategic developments, Cipher Mining made significant investments in its infrastructure, including approximately $135.3 million for new miner purchases and $55.6 million in construction for the Black Pearl Facility. The company also acquired the Barber Lake Facility in Colorado City, TX, for up to 300 MW, and a new site in Cotulla, TX, for up to 200 MW, enhancing its operational capacity.

As of September 30, 2024, Cipher Mining's cash and cash equivalents stood at $25.3 million, down from $86.1 million at the end of 2023. The company also reported an accumulated deficit of $198.9 million and total stockholders' equity of $672.0 million, reflecting a substantial increase from $491.3 million at the end of the previous fiscal year.

The company has established a secured line of credit with Coinbase Credit, Inc., and a term loan facility, both aimed at supporting its operational and strategic initiatives. Additionally, Cipher Mining is transitioning to a "large accelerated filer" status by December 31, 2024, which will require compliance with more stringent reporting and auditing standards.