Cipher Digital Inc. Q1 FY2025 earnings call

• Production: Mined 602 Bitcoin total in Q1, with Odessa contributing 524 Bitcoin generating $49M revenue. Odessa's fleet efficiency is 17.6 joules per terahash, and all-in weighted average power cost is $2.07 per kWh.
• Odessa: Completed rig upgrade in Q4 2024, seeing benefits with solid production. Currently has an operating hash rate of 11.3 exahashes per second using ~207 MW.
• Development Portfolio: Black Pearl data center in Wink, TX, Phase 1 nearing completion with expected energization in Q2. Barber Lake site signed term sheet with Fortress Credit Advisors for JV financing, with potential to expand to 800 MW. Stingray site in Andrews County, TX, expected to energize in Q3 2026. Reveille and other sites in 2027 with potential for HPC development.
• Treasury Management: Disciplined strategy of selling portion of Bitcoin production to cover expenses, holding portion for long-term value, and hedging ~10% of holdings. Outperformed simply holding Bitcoin by 16% and daily liquidation by 2% in Q1.

In the first quarter, Cipher Mining mined 602 Bitcoin total across four operating sites. Excluding joint ventures, the wholly-owned Odessa data center mined 524 Bitcoin, generating $49 million in revenue. Odessa represented approximately 86% of Bitcoin production in April. The joint venture sites (Alborz, Bear & Chief) contributed roughly 14% of overall Bitcoin production. In Q4 2024, Odessa mined 492 Bitcoin, resulting in $42 million in revenue. The revenue from Odessa in Q1 was up 16% from Q4 2024, with production up 6.5%.

• Expect to bring approximately 2.5 exahashes per second online in Q2, with total self-mining hash rate reaching ~16 exahashes per second by end of Q2 and ~23.1 exahashes per second by end of Q3.
• Black Pearl Phase 1 expected to energize in Q2. Barber Lake site has potential to expand to 800 MW with additional 500 MW expected online by 2029.
• Pipeline of 2.8 gigawatts of sites with potential for HPC development.

• Tariff uncertainties: Uncertainty around tariffs on mining rig deliveries and their impact on costs.
• Market volatility: Fluctuations in Bitcoin prices affecting revenue and financial results.
• Regulatory challenges: Evolving regulations in Texas and other regions related to data center development and interconnection.

Q: On the Fortress announcement, could you provide more color?

A: It's a joint venture where Fortress backstops financing of data center build. Share of economics depends on lease rates and market conditions. We have right to own up to 49% of JV.

Q: Have conversations continued post-tariff announcements?

A: Pace of conversations has not abated, with more reverse inquiries from investors and tenants.

Q: On Barber Lake milestones and interest in Stingray and Reveille?

A: Next milestone at Barber Lake is finalizing a lease with a tenant. Stingray has received interest in HPC, with different potential tenants than previously targeted. Reveille has potential for HPC with flexibility in tenant types.

Q: Impact of tariffs on new rig deliveries?

A: Navigating tariff uncertainty, but expecting to announce positive news related to tariffs in next month or so, dealing with it as a large customer.