Cipher Mining Inc. Reports Q1 2025 Financial Results with Revenue of $48.96 Million and Net Loss of $38.98 Million

Cipher Mining Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $48.96 million from bitcoin mining, a slight increase from $48.14 million in the same period last year. However, the company experienced a net loss of $38.98 million, compared to a net income of $39.90 million in the prior year. This significant shift in profitability is attributed to various factors, including increased operational costs and a decline in bitcoin prices, which led to unrealized losses on bitcoin holdings amounting to $20.18 million.

The company's total operating expenses surged to $87.05 million, up from just $1.35 million in the previous year, primarily due to a substantial increase in depreciation and amortization expenses, which rose to $43.47 million from $17.24 million. This increase is linked to the expansion of mining operations and a change in the estimated useful life of mining equipment. Additionally, general and administrative expenses rose to $8.95 million, reflecting higher legal and compliance costs as the company transitioned from Emerging Growth Company status.

In terms of operational metrics, Cipher Mining's hashrate capacity at its Odessa Facility reached 11.3 EH/s, while its joint ventures contributed an additional 4.4 EH/s. The company continues to expand its footprint, with plans to develop more than 3.0 GW of capacity across 11 sites, including a new 300 MW data center expected to energize 150 MW for bitcoin mining in 2025. As of March 31, 2025, Cipher Mining held approximately 630 bitcoin, valued at $52.02 million, down from 994 bitcoin valued at $92.65 million at the end of 2024.

The company has also made strategic moves to bolster its financial position, including raising $34.18 million through the sale of 9.15 million shares under its at-the-market sales agreement. Furthermore, Cipher Mining has established a $25 million secured line of credit with Coinbase, which is collateralized by bitcoin. Management believes that these financial resources, along with projected cash inflows from operations, will be sufficient to meet the company's operating and capital requirements for at least the next 12 months.

Looking ahead, Cipher Mining aims to continue its focus on expanding its bitcoin mining and high-performance computing data center operations while navigating the volatile digital asset market. The company is also addressing a material weakness in its internal controls over financial reporting, which it has identified and is actively working to remediate.