0001819989-25-000081
SEC filingCipher Mining posted higher Q2 bitcoin mining revenue of $43.6M driven by elevated bitcoin prices, yet larger depreciation and derivative losses widened the net loss to $45.8M.
For the three months ended June 30, 2025, Cipher Mining generated $43.6 million in bitcoin mining revenue, up from $36.8 million in the prior-year quarter. The increase resulted from higher average bitcoin prices, partially offset by reduced bitcoin production following the April 2024 halving. Cost of revenue rose modestly to $15.3 million, reflecting added power costs at the newly energized Black Pearl and Barber Lake facilities. Depreciation and amortization more than doubled to $44.1 million, driven by the Odessa fleet upgrade and the June 2024 change in estimated useful life of miners from five to three years. A $15.5 million loss on the change in fair value of the Luminant derivative asset contrasted with a $22.0 million gain in the prior year. The company recorded a net loss of $45.8 million versus a $15.3 million loss last year.
For the six-month period, revenue increased to $92.5 million from $84.9 million, again supported by stronger bitcoin prices. Operating loss widened to $83.3 million from operating income of $30.6 million, primarily due to $87.6 million of depreciation and amortization and equity investee losses that included a $4 million impairment share. Net loss reached $84.8 million compared with net income of $24.6 million.
Operations remain concentrated in bitcoin mining at the wholly-owned Odessa (207 MW, 11.3 EH/s) and Black Pearl (150 MW operational, 6.9 EH/s) facilities, supplemented by 49% interests in three joint-venture sites delivering 4.4 EH/s combined. Power sales at Odessa provided $1.4 million in Q2 proceeds. Equity in losses of investees widened to $1.7 million for the quarter and $7.0 million for the half-year, incorporating the Alborz impairment.
Management funded Black Pearl Phase 1 via the May 2025 $172.5 million convertible note issuance and continues to expand its 2.6 GW development pipeline across seven Texas sites, evaluating sites for both bitcoin mining and HPC. Cash and cash equivalents stood at $62.7 million at June 30, 2025, supported by at-the-market equity sales and bitcoin monetization. The company states that existing resources plus projected inflows are sufficient to meet operating and capital needs for at least the next twelve months.
As of June 30, 2025, Cipher Mining held $62.7 million in cash and cash equivalents, with working capital of $167.2 million. Total assets were $1.02 billion, including $112.1 million in bitcoin (1,046 BTC at fair value). The company had $167.1 million in long-term borrowings (net of issuance costs) from the issuance of $172.5 million principal of 1.75% convertible notes due 2030. Short-term borrowings were zero, down from $32.3 million at year-end 2024. Stockholders' equity stood at $748.9 million, with an accumulated deficit of $266.2 million.
The company has significant purchase commitments for mining equipment. As of June 30, 2025, nonrefundable deposits on equipment totaled $183.0 million, of which $165.9 million relates to the Bitmain Future Sales and Purchase Agreement. Additionally, the company has a call option to purchase up to 986 bitcoin for $120.2 million, expiring in August and November 2025. Other commitments include $14.4 million in restricted cash pledged as collateral under the Luminant Power Agreement.
During the six months ended June 30, 2025, Cipher Mining issued $172.5 million in convertible notes and repaid $25.0 million on its Coinbase Overnight Credit Facility. Capital expenditures were $55.9 million, primarily for the build-out of the Black Pearl Facility. The company also paid $162.4 million for deposits on equipment. No dividends or share buybacks were declared or executed during the period.
The company operates as a single reportable segment: Bitcoin Mining. For the six months ended June 30, 2025, segment revenue was $92.5 million, with segment operating loss of $35.3 million. The CODM evaluates performance based on operating income. All revenue is generated from bitcoin mining operations in Texas, with two wholly-owned facilities (Odessa and Black Pearl) and three partially-owned joint ventures.
For the six months ended June 30, 2025, Cipher Mining Inc. reported a net loss of $84.8 million, which was a significant deterioration from net income of $24.6 million in the prior-year period. Operating cash flow (CFO) was deeply negative at -$103.5 million, compared to -$52.0 million in the prior year. The gap between net loss and CFO was driven by substantial non-cash add-backs, most notably $87.2 million in depreciation and $91.5 million in non-cash consideration received for services, partially offset by a $39.0 million decrease in accrued expenses and other liabilities.
Cash flow from investing activities used $110.5 million, heavily weighted toward growth capital expenditures. Purchases of property and equipment totaled $55.9 million, while deposits on equipment—primarily for new miners—consumed $162.4 million. These outflows were partially offset by $121.4 million in proceeds from the sale of bitcoin, which the company classifies as an investing activity. The heavy investment in infrastructure underscores the company's aggressive expansion of its data center capacity.
Financing activities provided a substantial $271.0 million inflow, anchored by $167.1 million in net proceeds from the issuance of convertible notes due 2030 and $86.8 million from common stock issuances. The company also repurchased $4.3 million in shares to cover employee tax withholding obligations. No dividends were paid. Overall, the cash flow profile reflects a pre-revenue growth company funding its operating shortfall and massive capex program through external financing and strategic bitcoin liquidations, resulting in a net cash increase of $57.1 million for the period.