Cipher Mining Announces March 2023 Operational Update

NEW YORK, April 03, 2023 (GLOBE NEWSWIRE) -- Cipher Mining Inc. (NASDAQ:CIFR) (“Cipher” or the “Company”), a leading developer and operator of bitcoin mining data centers, today released its unaudited production and operations update for March 2023.

Key Highlights

Key Metrics	March 2023*
BTC Mined	413
BTC Sold	450
BTC Held	427
Deployed Mining Rigs	53,500
Month End Operating Hash Rate (EH/s)	5.7

*Approximate values

Management Commentary
During the month of March, Cipher expanded operations at its Odessa facility while funding both operating expenses and capital expenditures through ongoing operations. Cipher finished March with the potential to mine nearly 16 bitcoin¹ per day.

“We continue to make great progress on the buildout of our Odessa facility and now have over 4.7 EH/s of self-mining operations there, bringing our total self-mining capacity to 5.7 EH/s across all of our sites,” said Tyler Page, CEO of Cipher. “With our best-in-class unit economics, we were able to fund ongoing capex for Odessa from operations in March, without resorting to dilutive equity issuance or costly debt financing. In addition to mining bitcoin throughout the month, we managed our power usage to maximize our dollar-based output. There were times when we curtailed our mining so that we could sell power in the market, and there were also periods in the month when our Odessa power provider spent hours from their annual curtailment budget, potentially presenting us with greater power selling opportunities later in 2023. With the shipments of miners arriving at Odessa in April, we expect to achieve our initial goal of 6 EH/s, and we look forward to completing the Odessa infrastructure buildout in the second quarter.”

Bitcoin Production and Operations Updates for March 2023
During the month of March, Cipher energized 5,023 new Bitmain and MicroBT miners, representing an increase in hash rate of ~0.5 EH/s and a ~10% increase relative to the previous month. With the increase in hash rate, Cipher produced ~413 BTC in March, representing a ~4% increase in production relative to the previous month. As part of its regular treasury management process, Cipher sold ~450 BTC in March, ending the month with a balance of ~427 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

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¹ Assumes network hash rate of 332 EH/s and 930 bitcoins mined per day

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b42b11d5-1490-4e9c-8678-76c20feb315a