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Cipher Mining Inc (CIFR) Q1 2025 Earnings Call Highlights: Revenue Growth Amidst Challenges

In This Article:

  • Revenue: $49 million in Q1 2025, up 16% from $42 million in Q4 2024.

  • Bitcoin Mined: 602 total, with 524 mined at the Odessa data center.

  • Average Bitcoin Price: Approximately $93,500 per bitcoin in Q1 2025.

  • Net Loss: GAAP net loss of $39 million, or $0.11 per share.

  • Adjusted Earnings: $6 million, or $0.02 per share.

  • Depreciation and Amortization: $43 million, a 20% increase from the prior quarter.

  • Operating Capacity: 327 megawatts, with a pipeline expansion of approximately 2.8 gigawatts.

  • Cash Position: Increased to $23 million as of March 31, 2025.

  • Total Liquidity: $75 million as of March 31, 2025.

  • Electricity Cost per Bitcoin: $23,379 at data centers, $20,899 at Odessa site.

  • Unrealized Loss on Bitcoin Holdings: $20 million in Q1 2025.

  • Realized Gains on Bitcoin: $12 million in Q1 2025.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cipher Mining Inc (NASDAQ:CIFR) reported a 16% increase in revenue for Q1 2025, reaching $49 million, driven by higher bitcoin production and prices.

  • The company achieved a 6.5% increase in bitcoin production at its Odessa data center, mining 524 bitcoins in Q1 2025.

  • Cipher Mining Inc (NASDAQ:CIFR) maintains a highly competitive power cost of $0.027 per kilowatt hour, contributing to its strong unit economics.

  • The company has signed a term sheet with Fortress Credit Advisors, LLC for financing at Barber Lake, enhancing its data center development capabilities.

  • Cipher Mining Inc (NASDAQ:CIFR) has a robust pipeline with expected capacity expansion of approximately 2.8 gigawatts, positioning it for future growth.

Negative Points

  • Cipher Mining Inc (NASDAQ:CIFR) reported a GAAP net loss of $39 million for Q1 2025, impacted by a $20 million unrealized loss on bitcoin holdings.

  • The company experienced higher depreciation expenses due to the full depreciation of new machines installed at Odessa, affecting bottom-line results.

  • Despite revenue growth, Cipher Mining Inc (NASDAQ:CIFR) faced a significant decrease in adjusted earnings year-over-year, from $63 million to $6 million.

  • The company is navigating uncertainties related to tariffs on mining rig deliveries, which could impact future operations and costs.

  • Cipher Mining Inc (NASDAQ:CIFR) faces challenges in securing tenants for its data centers amid a competitive and evolving market landscape.

Q & A Highlights

Q: On the Fortress announcement, could you provide more clarity on the terms of the financing arrangement for Barber Lake? A: Tyler Page, CEO: At a high level, it will be a joint venture with Fortress as our financing partner. They will backstop the financing of a full data center build, with the amount varying depending on the tenant's specifications. We have the right to own up to 49% of the JV, contributing our assets like land and interconnects. The exact economics will depend on lease rates and market conditions for data centers.