Cipher Digital Inc. Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Cipher Mining Q3 2023 Earnings Summary

  • Hashrate and Production Growth: Cipher reached 7.2 EH/s of self-mining capacity with all four data centers operational. With new rig acquisitions, total capacity under contract now stands at 8.4 EH/s. By end of 2025, anticipated growth may bring capacity to 23.5 EH/s.
  • Odessa Facility: Odessa, Cipher's flagship facility, achieved 6.2 EH/s using 207 MW of power. In Q3, it mined 1,091 BTC and YTD (through Sept 30) mined 3,162 BTC.
  • Power Costs and Economics: Cipher maintains among the lowest electricity costs in the industry—$0.027/kWh with average YTD all-in electricity cost per bitcoin at $8,379.
  • New Project - "Black Pearl": Cipher agreed to acquire a 300 MW Texas-based site with ERCOT interconnection approval. It will be built in flexible phases beginning in 2025. Cipher will finance it through a mix of treasury bitcoin sales, equity ATM program, free cash flow, and potential debt financing. No “take or pay” power obligations allow development at Cipher's discretion.
  • New Rig Purchases: Cipher acquired 1.2 EH/s of Bitmain’s S21 mining rigs at $14/TH. Deliveries begin in Q1 2024, with full delivery by Q2. Rig efficiency of the entire fleet expected to improve to approximately 29 J/TH once deployed.

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Operator: Good day and thank you for standing by. Welcome to the Cipher Mining’s Third Quarter 2023 Business Update Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker, Josh Kane. Please go ahead. Josh Kane: Good morning. Thank you for joining us on this conference call to discuss Cipher Mining’s third 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 competition and our go

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