Cipher Digital Inc. Q1 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Executive Overview

  • Q1 2023 Revenue: $21.9 million, driven by 1,145 BTC mined (947 from the Odessa facility and 198 from JVs).
  • Bitcoin Production: Cipher mined 1,306 BTC YTD at Odessa and 320 BTC YTD at Alborz.
  • Self-mining Hashrate: 6 EH/s as of Q1 (vs. 0 EH/s in Q1 2022). Forecast to reach 7.2 EH/s by end of Q3 and potentially 8.2 EH/s by end of FY 2023.
  • Rig Fleet: Over 59,000 mining rigs in operation. Purchase of 11,000 new rigs will boost this to over 70,000.
  • CapEx Strategy: CapEx for Odessa expansion solely funded from operations. Cipher avoids debt, maintains a conservative balance sheet.
  • Bitcoin Sale Strategy: Selling just enough BTC monthly to fund operations and CapEx.

Financial Highlights (Compared to Q1 2022)

  • Revenue increased from $0 in Q1 2022 (no Bitcoin production at that time) to $21.9 million.
  • Net Loss: Improved to $6.6 million (–$0.03/share) from $17.5 million (–$0.07/share).
  • Non-GAAP Net Income: $6.4 million (vs. non-GAAP loss of $7.9 million in Q1 2022).
  • Electricity Costs per BTC:
    • Alborz: $6,747
    • Bear & Chief: $5,927
    • Odessa: $7,309

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Operator: Good morning, and welcome to the Cipher Mining First Quarter 2023 Conference Call. All lines have been placed on use to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions] And finally, I would like to advise all participants that this call is being recorded. Thank you. I'd now like to welcome Joshua Kane with Investor Relations to begin the conference. Josh, over to you. Josh Kane: Good morning. Thank you for joining us on this conference call to discuss Cipher Mining's first quarter 2023 business update. Joining me on the call today are Tyler Page, Chief Executive Officer; and Ed Farrell, Chief Financial Officer. Please note that you may also review our press release and presentation, which can be found on the Investor Relations section of the company's website. Please note that this call will also be simultaneously webcast on the Investor Relations section of the company's website. This conference call is the property of Cipher Mining and any taping or other reproduction is expressly prohibited without prior consent. Before we start, I'd like to remind you that the following discussion, as well as our press release and presentation, contain forward-looking statements, including, but not limited to, Cipher's financial outlook, business plans and objectives, and other future events and developments, including statements about the market potential of our business operations, potential competi

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