Cipher Mining (CIFR) Q2 2024 earnings summary

Executive summary

• Achieved 8.7 EH/s self-mining hashrate as of July 2024, targeting 13.5 EH/s by year-end and 35 EH/s in 2025, with major upgrades and new data center launches including the 300 MW Black Pearl facility and Reveille data center (200 MW).

• Launched a new HPC infrastructure business, leveraging a strong site pipeline, experienced team, and robust capital access, with expansion into AI/HPC data centers.

• Maintained a competitive all-in weighted average power price of 2.7 cents/kWh, supporting best-in-class unit economics.

• Held 2,270 Bitcoin as of July 31, 2024, with a focus on growing inventory and dynamic treasury management.

• Operates four bitcoin mining data centers in Texas, with ongoing upgrades and treasury management.

Financial highlights

• Q2 2024 revenue was $37 million, up from $31.2 million in Q2 2023 but down 24% sequentially; GAAP net loss was $15.3 million, and adjusted net loss was $3.5 million.

• Mined 563 Bitcoin in Q2 2024, generating $37 million in revenue at an average price of $65,000 per Bitcoin.

• Cash and cash equivalents totaled $122.6 million as of June 30, 2024; Bitcoin inventory increased to 2,203 BTC ($138.1 million fair value).

• Adjusted loss per share for Q2 2024 was $0.01; GAAP EPS was ($0.05), unchanged from Q2 2023.

• Operating cash flow was $(52.0) million for H1 2024.

Outlook and guidance

• Self-mining hashrate expected to reach 13.5 EH/s by year-end 2024 and 35 EH/s in 2025, with Black Pearl facility (300 MW, 21.5 EH/s) energizing in Q2 2025.

• Pipeline of up to 1.7 GW across four new sites, with long-term development timelines and expansion into AI/HPC markets.

• Management expects existing resources and bitcoin inflows to cover operating and capital needs for at least 12 months.