Cipher Mining Inc. ((CIFR)) has held its Q4 earnings call. Read on for the main highlights of the call.
Cipher Mining Inc. recently held its earnings call, revealing a mixed sentiment characterized by robust revenue growth and strategic investments, countered by increased operating expenses and a net loss for the year. Despite these financial hurdles, the company remains optimistic about its long-term prospects, focusing on expanding its data center development pipeline and securing investments.
Record-Breaking Revenue Growth
Cipher Mining reported an impressive 75% increase in revenue quarter-over-quarter, achieving $42 million in Q4 2024. This growth was largely driven by the successful completion of the Odessa mining rig upgrade and the appreciation in Bitcoin prices.
Significant Hashrate Expansion
The company achieved a remarkable 88% increase in hashrate over the year, growing from 7.2 EH/s at the end of 2023 to 13.5 EH/s by the end of 2024. This expansion underscores Cipher Mining’s successful fleet upgrades and scaling efforts.
SoftBank Investment
Cipher Mining secured a substantial $50 million investment from SoftBank. This financial backing strengthens the company’s ability to expand its data center development business, marking a significant milestone in its growth strategy.
Strong Adjusted Earnings
The company reported a significant increase in adjusted earnings, which rose by $61 million to $107 million in 2024. Adjusted earnings per share also saw a notable rise, increasing to $0.33 from $0.17 in the previous year.
Low Electricity Costs
Cipher Mining maintained highly competitive electricity costs, with an all-in cost of approximately $20,281 per Bitcoin produced and a low weighted average power price of $0.027/kWh.
Strategic Land Acquisitions
The acquisition of 337 acres of land at Barber Lake, with potential expansion to 800 megawatts, enhances Cipher Mining’s data center development pipeline, positioning the company for future growth.
Increased Operating Expenses
Operating expenses rose by $48 million in 2024, primarily due to depreciation and amortization expenses associated with fleet upgrades and strategic growth initiatives.
GAAP Net Loss for 2024
Cipher Mining reported a GAAP net loss of $45 million for the year, with a loss per share of $0.14, compared to a net loss of $26 million in the previous year. This reflects the financial challenges the company faced despite its revenue growth.
High Electricity Costs at Joint Ventures
The joint venture data centers incurred significantly higher electricity costs of $34,542 per Bitcoin compared to the Odessa facility, highlighting a challenge in operational cost management.
Short-Term Borrowings
Cipher Mining reported short-term borrowings of $32 million, indicating a reliance on external financing to maintain liquidity while preserving its Bitcoin inventory.
Forward-Looking Guidance
Looking ahead, Cipher Mining projects its self-mining hashrate to reach at least 23 EH/s by Q3 2025. The company plans to expand its infrastructure with a new 300-megawatt data center at Black Pearl and potential expansion at Barber Lake to a total of 800 megawatts by 2029. These initiatives, along with the $50 million investment from SoftBank, position Cipher Mining for robust growth in Bitcoin mining and high-performance computing data centers.
In summary, Cipher Mining’s earnings call highlighted a positive outlook with strong revenue growth and strategic investments, despite facing financial challenges such as increased operating expenses and a net loss. The company’s focus on expanding its infrastructure and securing investments underscores its commitment to long-term growth and operational efficiency.