Cipher Mining Announces August 2023 Operational Update

By: Cipher Mining Inc. via GlobeNewswire

September 01, 2023 at 16:05 PM EDT

NEW YORK, Sept. 01, 2023 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”) today released its unaudited production and operations update for August 2023.

Key Highlights

Key Metrics	August 2023*
BTC Mined	357
Power Sales Equivalent BTC¹	45
BTC Sold	355
BTC Held	519
Deployed Mining Rigs	68,000
Month End Operating Hash Rate (EH/s)	6.8

*Approximate values

Management Commentary
In August, Cipher continued to expand operations at its Odessa facility and finished the month with the potential to mine up to 16.1 bitcoin² per day.

“Our team delivered another solid month of production in August,” said Tyler Page, CEO of Cipher. “We saw temperatures and power demand in Texas continue to break records, resulting in the most significant monthly curtailment of the year from our power provider at Odessa. Our operations team continued to overcome challenges as they optimized the performance of our mining rigs in the heat. All rigs are now onsite, and we expect to energize them in early September, which will bring our total self-mining hash rate to 7.2 EH/s and complete the final phase of our Odessa build-out. As in previous months, we have also reported additional monthly power sales as a bitcoin equivalent figure in the table above.

“On the corporate side, we also bolstered our treasury management platform this month by adding a $10mm term credit facility with Coinbase. This facility will be available for us to draw on as an additional tool in the future.”

Our Odessa Data Center, with recently deployed infrastructure in the foreground

Our Odessa Data Center, with recently deployed infrastructure in the foreground

Bitcoin Production and Operations Updates for August 2023

Cipher continued to finalize the expansion of the infrastructure and installation of the new Canaan rigs at Odessa, bringing Cipher’s total deployed rig count to approximately 68,000. Cipher produced ~357 BTC in August, representing a ~15% decrease in production relative to the previous month. As part of its regular treasury management process, Cipher sold ~355 BTC in August, ending the month with a balance of ~519 BTC.

About Cipher
Cipher is an emerging technology company focused on the development and operation of bitcoin mining data centers. Cipher is dedicated to expanding and strengthening the Bitcoin network's critical infrastructure. Together with its diversely talented team and strategic partnerships, Cipher aims to be a market leader in bitcoin mining growth and innovation. To learn more about Cipher, please visit https://www.ciphermining.com/

Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations regarding our future results of operations and financial position, business strategy, timing and likelihood of success, potential expansion of bitcoin mining data centers, expectations regarding the operations of mining centers, and management plans and objectives, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and our management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 14, 2023, and in Cipher’s subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts:
Investor Contact:
Josh Kane
Head of Investor Relations at Cipher Mining
josh.kane@ciphermining.com

Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com

^¹ Represents unaudited power sales estimates for the month of August (based on current meter data and nodal prices) divided by the bitcoin price as of August 31, 2023 of ~$25,933
^² Assumes network hash rate of 386 EH/s and 920 bitcoins mined per day

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c252e951-d5c7-471c-b12a-9861f3862127