Cipher Mining Q1 2025 slides: revenue up 17%, earnings turn negative

Cipher Mining Inc (NASDAQ:CIFR) presented its Q1 2025 business update on May 6, revealing mixed results with increased revenue and Bitcoin production offset by a significant decline in earnings. The company’s stock, which closed at $2.98 on May 5, was down 2.35% in premarket trading following the presentation.

Quarterly Performance Highlights

Cipher Mining reported revenue of $49 million for Q1 2025, representing a 17% increase from $42 million in Q4 2024 and a slight year-over-year improvement from $48 million in Q1 2024. The company mined 602 Bitcoin during the quarter, up from 585 BTC in the previous quarter.

The company maintained efficient operations with a self-mining efficiency of 18.9 J/TH and a weighted average power price of 2.7c/kWh, resulting in an all-in electricity cost per Bitcoin of $23,379 for Q1 2025.

As shown in the following key performance indicators chart:

Despite these operational achievements, Cipher Mining’s profitability declined significantly. The company reported a GAAP net loss of $39 million for Q1 2025, a stark reversal from the $18 million profit in Q4 2024. Adjusted earnings also fell sharply to $6 million from $51 million in the previous quarter.

Detailed Financial Analysis

The financial results reveal a concerning trend in profitability despite revenue growth. On a quarter-over-quarter basis, GAAP earnings per share turned negative at $(0.11) compared to $0.05 in Q4 2024, while adjusted earnings per share declined to $0.02 from $0.14.

The year-over-year comparison shows similar deterioration, with GAAP earnings per share falling from $0.13 in Q1 2024 to $(0.11) in Q1 2025, and adjusted earnings per share dropping from $0.21 to $0.02.

The following financial highlights illustrate these quarter-over-quarter changes:

Year-over-year comparisons further highlight the profitability challenges:

Cipher Mining’s treasury management strategy outperformed a simple "hold Bitcoin" approach by 16% and daily liquidation by 2%. The company’s weighted average spot price for Bitcoin in Q1 2025 was $95,991 using its active strategy, compared to $82,500 for a hold strategy.

Strategic Initiatives & Development Pipeline

Cipher Mining continues to expand its operations, with a focus on both Bitcoin mining and High-Performance Computing (HPC). The company’s self-mining hashrate is projected to grow from the current ~13.5 EH/s to ~16.0 EH/s in Q2 2025 and ~23.1 EH/s in Q3 2025.

The following chart illustrates this planned hashrate growth:

The company’s flagship Odessa facility currently accounts for 86% of Bitcoin production with ~11.3 EH/s operating hashrate and 207 MW total power capacity. The site achieved an all-in electricity cost per Bitcoin of ~$20,899 in Q1 2025.

Black Pearl represents Cipher Mining’s most significant near-term development project, with 300 MW total power capacity across 70 acres. Energization is expected in Q2 2025, with Phase I envisioning 150 MW of air-cooled rigs generating up to ~2.5 EH/s initially and ramping to ~9.6 EH/s in Q3 2025.

The Black Pearl development is progressing as shown:

Beyond Black Pearl, Cipher Mining has an extensive development pipeline totaling 2.8 GW of future capacity across seven sites. Notable projects include Barber Lake (300 MW approved capacity), where the company has signed Fortress as a joint venture financing partner, and Stingray (100 MW capacity) with energization expected in Q3 2026.

Forward-Looking Statements

Despite current profitability challenges, Cipher Mining maintains an optimistic outlook based on its expansion plans and operational efficiency. The company’s focus on low-cost power (2.7c/kWh average) and efficient mining operations (18.9 J/TH) positions it to potentially benefit from future Bitcoin price appreciation.

However, investors should note the significant gap between the company’s operational achievements and its financial performance. While Bitcoin production and revenue are increasing, the substantial decline in both GAAP and adjusted earnings raises questions about cost management and long-term profitability.

The stock’s performance reflects these concerns, trading at $2.98 as of May 5, 2025, well below its 52-week high of $7.99. This represents a significant decline from the previous quarter when the stock traded higher following a surprise profit in Q4 2024.

As Cipher Mining continues its expansion efforts, particularly at Black Pearl, investors will be watching closely to see if the company can translate its growing hashrate and Bitcoin production into improved financial results in upcoming quarters.

Full presentation:

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