Cipher Mining Inc. Q3 FY2025 earnings call

• HPC Transactions: Executed a second landmark HPC transaction with Amazon Web Services, contracting 300 megawatts of gross capacity with ~$5.5 billion in contract revenue over 15 years. Secured ownership in a joint venture to develop a 1-gigawatt site in West Texas called Colchis.
• Convertible Offering: Completed a $1.3 billion convertible offering, the largest digital infrastructure convertible issuance to date, 7x oversubscribed, strengthening the balance sheet.
• Mining Operations: Bitcoin mining operations grew, with Black Pearl fully online, increasing operational mining capacity to 477 megawatts and a total self-mining hash rate of ~23.6 exahash per second.
• Development Portfolio: Stingray site on track to energize in Q4 2026, Reveille site on track to energize in Q2 2027, and 3Ms sites (Mikeska, Milsing, McLennan) in final interconnection approval processes.

Bitcoin Mining Segment: In Q3, Cipher Mining produced 629 bitcoin. Odessa was the most significant site, representing approximately 56% of bitcoin production, with an operating hash rate of ~11.3 exahash per second using ~207 megawatts. Black Pearl began contributing significantly in Q3, with Phase 1 (150 megawatts) mining ~10.1 exahash per second, contributing ~36% of production. The joint venture sites of Alborz, Bear, and Chief had a total power capacity of 120 megawatts and generated approximately 4.4 exahash per second, with Cipher owning 49% and their portion contributing roughly 9% of overall bitcoin production. HPC Segment: Cipher executed pivotal transactions with Fluidstack/Google and Amazon Web Services. The deal with AWS contracted 300 megawatts of gross capacity with ~$5.5 billion in contract revenue over 15 years. The Colchis site was acquired, featuring 1 gigawatt of capacity with a fully executed Direct Connect Agreement with American Electric Power.

• Anticipated delivery of 168 megawatts of critical IT capacity at Barber Lake by September 30, 2026, with rent commencing in October 2026.
• AWS deal: 300 megawatts of gross capacity, phases beginning in August 2026.
• Confident in financing HPC projects with debt financing for the majority of construction costs and cash on hand for remaining obligations, no need for further equity fundraising.

• Supply Chain: Potential constraints and inflation affecting capital expenditures for construction.
• Market Dynamics: Fierce competition in the HPC space and uncertainty in market adoption.
• ERCOT Approval: Uncertainty in timelines for ERCOT approvals of sites like the 3Ms sites.

Q: About power distribution and pricing for the AWS deal.

A: The ink is still drying on the AWS deal, finalizing design details. PUE in line with Barber Lake (~1.4-1.45) depending on cooling method, cost per critical IT megawatt in line with past estimates.

Q: Financing plans for HPC projects.

A: Exploring debt options for the Fluidstack/Google deal, convertible offering provides excess cash for equity portion of AWS deal financing.

Q: Power availability from growth pipeline.

A: Sites in queue, Colchis ERCOT approval expected in 2028, 3Ms sites awaiting ERCOT approval.

Q: Optionality of 56 MW at Barber Lake.

A: Active discussions on using for own compute or colocation, high interest in sites due to strong market demand.

Q: Colchis design and CapEx.

A: Cost per megawatt in line with past sites, partnering with AEP helps ERCOT approval process.

Q: Supply chain constraints.

A: Team has track record, over 85% equipment secured for Barber Lake, confident in timelines.

Q: Site linking for workloads.

A: Hyperscalers seek redundancy, but 3Ms sites not close enough for linking yet.

Q: Expansion outside Texas.

A: Looking at PJM, but Texas preferred due to business environment and team's expertise in sourcing sites.

Q: Revenues from HPC deals.

A: AWS deal rent commencing in August 2026, Fluidstack/Google rent commencing in October 2026.

Q: Urgency in HPC deals.

A: Meteoric rise in AI demand, hyperscalers scrambling for capacity, leading to urgent deal timelines.

Q: Odessa PPA and HPC evolution.

A: PPA at Odessa until 2027, mining economics strong, but HPC possible in future with site reconfiguration.

Q: AWS site delivery confidence.

A: High confidence due to high-quality build at Black Pearl, allowing quick delivery.

Q: Competition for Colchis site.

A: Unique in bridging early-stage grid opportunities and hyperscaler needs, limited competition