Cipher Mining Announces June 2023 Operational Update

NEW YORK, July 05, 2023 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ:CIFR) (“Cipher” or the “Company”) today released its unaudited production and operations update for June 2023.

Key Highlights

Key Metrics	June 2023*
BTC Mined	360
Power Sales Equivalent BTC1	41
BTC Sold	350
BTC Held	417
Deployed Mining Rigs	65,000
Month End Operating Hash Rate (EH/s)	6.7

*Approximate values

Management Commentary
In June, Cipher continued to expand operations at its Odessa facility and finished June with the potential to mine up to 17.1 bitcoin² per day.

“The month of June featured challenging operating conditions. Texas experienced record high temperatures, weak wind production and record demand for power as we entered the critical 4CP summer months,” said Tyler Page, CEO of Cipher. “Against this backdrop, we are delighted to announce production numbers that reflect not only our ability to navigate tough operating conditions and manage our mining fleet during extreme temperatures, but also our optimization of production through power sales. In this month’s report, we introduced a Power Sales Equivalent BTC line item that is not included in our BTC Mined statistic and is an estimate of our incremental power sales for the month expressed in bitcoin terms. We hope this provides insight into our monthly revenue potential beyond just our bitcoin production. With the extreme demand for power in June, we also saw our Odessa PPA counterparty use a significant amount of their annual curtailment budget, which demonstrates the value of bitcoin mining as an industry in supporting the grid at its most vulnerable times and positions us well for the remainder of 2023 if market power prices remain high.”

“As we continue to expand our mining capacity, we aim to deliver operational excellence, even in the hot Texas summer. Our team focuses on efficient optimization of the portfolio, whether that is through the mix of rigs in use, underclocking our machines, or selling power back to the grid at the most valuable times. We are also pleased to announce that we have taken delivery of all 11,000 Canaan rigs that we recently purchased. And with the final build out of the infrastructure in the next few months, we are well on track to deliver on our goal of 7.2 EH/s by the end of Q3.”

Satellite Image of the Odessa Data Center

Final Shipment of Canaan Rigs

Bitcoin Production and Operations Updates for June 2023
Cipher received the delivery of all 11,000 Canaan rigs recently purchased and incrementally began to energize the new rigs during the month of June, bringing Cipher’s total deployed rig count to approximately 65,000. Cipher produced ~360 BTC in June, representing a ~27% decrease in production relative to the previous month. As part of its regular treasury management process, Cipher sold ~350 BTC in June and executed its first bitcoin futures and options trades, ending the month with a balance of ~417 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, 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

Photos accompanying this announcement are available at :

https://www.globenewswire.com/NewsRoom/AttachmentNg/f59e7611-1e4c-43d1-8b96-11a5aefeb9c2

https://www.globenewswire.com/NewsRoom/AttachmentNg/eefe09d1-48c7-4ddf-82bf-1592c3868643

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¹ Represents unaudited power sales estimates for the month of June (based on current meter data and nodal prices) divided by the bitcoin price as of June 30, 2023 of ~$30,449
² Assumes network hash rate of 370 EH/s and 946 bitcoins mined per day