Cipher Digital (CIFR) investor relations material

Market backdrop and demand

• Project financing is more challenging as base rates, debt spreads, supply and execution scrutiny rise; physical delivery is now the key investor focus between lease signing and cash flow.

• Construction at scale faces labor, supply-chain and cost pressures, while power scarcity remains the constraint and demand has not weakened in observed tenant discussions.

• Lease terms and tenant alignment continue to improve despite market skepticism, supporting the view that demand for AI infrastructure remains strong.

Lease durability and campus locations

• Barber Lake’s second 10-year lease adds $5.2B of contracted revenue starting a decade later, demonstrating terminal value for long-lived AI infrastructure.

• The first 10-year Fluidstack lease has a Google backstop supporting project debt, structured to fully amortize during that term; the following lab lease would face a substantially delevered asset.

• AI campuses need more land, power and room to scale than traditional cloud facilities, positioning West Texas and other nontraditional markets as potential Tier 1 AI locations.

• Lease standards have shifted from 10-year modified gross terms toward 20-year triple-net leases, with improving terms viewed as support for renewal prospects and terminal value.

Leasing pipeline and power development

• Discussions span hyperscalers, chip developers and other highly rated prospective tenants; current focus remains on individually underwriting each site and prioritizing creditworthy counterparties.

• Colchis received conditional approval for 1 GW in ERCOT Batch Zero; final designation is expected after the December audit, while permitting and regulatory reviews may delay execution rather than weaken demand.

• Time to power and power scarcity remain central to leasing decisions; permitted sites outside delayed approval processes may become more valuable to tenants.

• Behind-the-meter plans include secured land and lateral gas pipeline construction; tenant interest is strong, but gas transport agreements, generation equipment access and deal structuring remain challenges.