Delaware |
7374 |
85-1614529 | ||
(State or Other Jurisdiction of Incorporation or Organization) |
(Primary Standard Industrial Classification Code Number) |
(I.R.S. Employer Identification Number) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
☐ | Emerging growth company |
Page |
||||
1 |
||||
2 |
||||
5 |
||||
6 |
||||
7 |
||||
11 |
||||
12 |
||||
59 |
||||
60 |
||||
62 |
||||
74 |
||||
88 |
||||
94 |
||||
99 |
||||
103 |
||||
105 |
||||
111 |
||||
120 |
||||
124 |
||||
125 |
||||
126 |
||||
127 |
||||
F-1 |
• | “Alborz LLC Agreement” are to the amended and restated limited liability company agreement of Alborz LLC, dated January 28, 2022, by and among Cipher Mining Technologies Inc. and Alborz Interests DC LLC (a subsidiary of WindHQ LLC); |
• | “Amended and Restated Bitfury Subscription Agreement” are to that certain subscription agreement, dated as of March 4, 2021, as amended and restated in its entirety on July 8, 2021 and as subsequently amended and restated in its entirety on August 27, 2021, by and among Bitfury Top HoldCo and GWAC; |
• | “Anchor Investors” are to certain funds and accounts managed by Magnetar Financial LLC, Mint Tower Capital Management B.V., Peridian Fund, L.P., and Polar Multi-Strategy Master Fund; |
• | “Bitfury Group” are to Bitfury Top HoldCo and its subsidiaries; |
• | “Bitfury Holding” are to Bitfury Holding B.V., a subsidiary of Bitfury Top HoldCo; |
• | “Bitfury Private Placement” are to the private placement pursuant to which GWAC entered into the Amended and Restated Bitfury Subscription Agreement with Bitfury Top HoldCo pursuant to which Bitfury Top HoldCo agreed to subscribe for and purchase, and Good Works agreed to issue and sell to Bitfury Top HoldCo (or an affiliate of Bitfury Top HoldCo), an aggregate of 6,000,000 shares of our common stock at a purchase price of $10.00 per share for an aggregate of cash and/or forgiveness of outstanding indebtedness owed by Cipher to Bitfury Top HoldCo (or an affiliate of Bitfury Top HoldCo) of $60,000,000; |
• | “Bitfury Top HoldCo” are to Bitfury Top HoldCo B.V., the holder of 100% of the shares of Cipher Common Stock prior to the Business Combination; |
• | “Board” are to our board of directors; |
• | “Business Combination” are to the Merger and other transactions contemplated by the Merger Agreement, collectively, including the PIPE Financing and the Bitfury Private Placement; |
• | “Bylaws” are to the Amended and Restated Bylaws of Cipher Mining Inc., adopted on August 27, 2021; |
• | “Certificate of Incorporation” are to the Second Amended and Restated Certificate of Incorporation of Cipher Mining Inc., as filed with the Delaware Secretary of State on August 27, 2021; |
• | “Cipher” are to the Cipher Mining Technologies Inc, a Delaware corporation, prior to the consummation of the Business Combination and to Cipher Mining Inc. and its consolidated subsidiaries following the Business Combination; |
• | “Cipher Common Stock” are to the shares of common stock, par value $0.001 per share, of Cipher; |
• | “Closing” are to the closing of the Business Combination; |
• | “Closing Date” are to August 27, 2021; |
• | “Code” are to the Internal Revenue Code of 1986, as amended; |
• | “Company Support Agreement” are to that certain support agreement, dated as of March 4, 2021, by and among GWAC, Cipher and Bitfury Top HoldCo; |
• | “COVID-19” are to the novel coronavirus, SARS-CoV-2 COVID-19 or any mutation of the same, including any resulting epidemics, pandemics, disease outbreaks or public health emergencies; |
• | “DGCL” are to the Delaware General Corporation Law, as amended; “Exchange Act” are to the Securities Exchange Act of 1934, as amended; |
• | “Exchange Ratio” are to the ratio of 400,000 shares of our common stock for each 1 share of Cipher Common Stock; |
• | “Effective Time” are to the effective time of the Merger; |
• | “Governing Documents” are to the Certificate of Incorporation and the Bylaws; |
• | “GWAC” are to Good Works Acquisition Corp., a Delaware corporation; |
• | “GWAC common stock” are to GWAC’s common stock, par value $0.001 per share prior to consummation of the Transactions; |
• | “GWAC Founder Shares” are to the 4,478,000 shares of GWAC common stock held by the Sponsor, GWAC Sponsor 2, LLC, the Anchor Investors, GWAC’s officers and directors, and certain other GWAC stockholders (collectively, the “Founders”); |
• | “GWAC’s IPO” are to the initial public offering by GWAC which closed on October 19, 2020; |
• | “GWAC Private Placement Shares” are to the 228,000 private placement shares of GWAC underlying 228,000 of GWAC Private Placement Units; |
• | “GWAC Private Placement Units” are to the 228,000 units that were issued in a private placement at a price of $10.00 per unit to certain funds and accounts managed by the Anchor Investors, simultaneously with the closing of the GWAC’s IPO; each unit consists of one GWAC Private Placement Share and one-half of one Warrant; |
• | “GWAC Support Agreement” are to that certain support agreement, entered into on March 4, 2021, as amended and restated in its entirety on May 12, 2021, by and among GWAC, the Sponsor, GW Sponsor 2, LLC, Magnetar Financial LLC, Mint Tower Capital Management B.V., Peridian Fund, L.P., Polar Multi-Strategy Master Fund, and Cipher; |
• | “Incentive Award Plan” are to the Cipher Mining Inc. 2021 Incentive Award Plan; |
• | “Initial Stockholder Shares” are to 775,000 shares of our common stock owned by the Initial Stockholders and 800,000 shares of our common stock, which certain Initial Stockholders donated to non-profit organizations listed as the Selling Securityholders in this prospectus; |
• | “Initial Stockholders” are to GWAC’s former officers and directors, namely Cary Grossman, Fred Zeidman, Douglas Wurth, David Pauker, John J. Lendrum III, Paul Fratamico and Tahira Rehmatullah; |
• | “Master Services and Supply Agreement” or the “MSSA” are to the master services and supply agreement to entered into at Closing by Cipher and Bitfury Top HoldCo; |
• | “Merger” are to the merger of Merger Sub with and into Cipher pursuant to the Merger Agreement, with Cipher as the surviving company in the Merger and, after giving effect to such Merger, Cipher becoming a wholly-owned subsidiary of GWAC; |
• | “Merger Agreement” are to that certain Agreement and Plan of Merger, dated as of March 4, 2021, by and among GWAC, Cipher and Merger Sub; |
• | “Merger Sub” are to Currency Merger Sub, Inc., a Delaware corporation and a direct wholly owned subsidiary of GWAC; |
• | “PIPE Financing” are to the private placement pursuant to which GWAC entered into the PIPE Subscription Agreements (containing commitments to funding that are subject only to conditions that generally align with the conditions set forth in the Merger Agreement) with certain investors whereby such investors purchased an aggregate of 32,235,000 shares of our common stock at a purchase price of $10.00 per share for an aggregate commitment of $322,350,000; |
• | “PIPE Investors” are to the investors who participated in the PIPE Financing and entered into the PIPE Subscription Agreements; |
• | “PIPE Subscription Agreements” are to the subscription agreements entered into by and between GWAC and each of the PIPE Investors in connection with the PIPE Financing; |
• | “Private Placement Shareholders” are to the holders of the GWAC Private Placement Shares; |
• | “Private Placement Warrants” means the currently outstanding 114,000 private placement warrants to purchase our common stock that were issued to the Anchor Investors as part of GWAC’s IPO, which are substantially identical to the Public Warrants, subject to certain limited exceptions; |
• | “Public Warrants” are to the currently outstanding 8,500,000 redeemable warrants to purchase our common stock that were issued in GWAC’s IPO; |
• | “Registration Rights Agreement” are to that certain registration rights agreement, dated as of August 26, 2021, by and among GWAC, Cipher, the Sponsor, Bitfury Top HoldCo and the other parties thereto; |
• | “SEC” are to the United States Securities and Exchange Commission; |
• | “Sponsor” are to I-B Good Works LLC, a Delaware limited liability company; |
• | “Stockholder Restrictive Covenant Agreement” are to that certain restrictive covenant agreement, dated as of March 4, 2021, by and among Bitfury Top HoldCo and GWAC; |
• | “Transaction Agreements” are to the Merger Agreement, the GWAC Support Agreement, the Company Support Agreement, the Registration Rights Agreement, the PIPE Subscription Agreements, each Letter of Transmittal, the Proposed Certificate of Incorporation, the Proposed Bylaws, and all the other agreements, documents, instruments and certificates entered into in connection herewith and/or therewith and any and all exhibits and schedules thereto; |
• | “Transactions” are to, collectively, the Business Combination and the other transactions contemplated by the Merger Agreement; |
• | “transfer agent” are to Continental Stock Transfer & Trust Company; |
• | “Trust Account” are to the trust account of GWAC that holds the proceeds from the GWAC’s IPO, governed by the Trust Agreement; |
• | “Trust Agreement” are to the investment management trust agreement, dated October 19, 2020, by and between GWAC and Continental Stock Transfer & Trust Company, as trustee, entered into in connection with the GWAC’s IPO; |
• | “warrants” are to the Public Warrants and the Private Placement Warrants; and |
• | “Warrant Agreement” means the warrant agreement, dated October 19, 2020, between GWAC and Continental Stock Transfer & Trust Company, as warrant agent, which sets forth the expiration and exercise price of and procedure for exercising the Warrants. |
• | our planned buildout of cryptocurrency mining sites; |
• | our ability to raise financing in the future; |
• | our financial and business performance following the Business Combination; |
• | our commercial partnerships and supply agreements; |
• | the ability to maintain the listing of our common stock and warrants on Nasdaq, and the potential liquidity and trading of such securities; |
• | our success in retaining or recruiting, or changes required in, our officers, key employees or directors; |
• | the effects of competition and regulation on our business; |
• | the effects of price fluctuations in the wholesale and retail power markets; |
• | the effects of global economic, business or political conditions, such as the global coronavirus (“COVID-19”) pandemic and the disruption caused by various countermeasures to reduce its spread; |
• | the value and volatility of Bitcoin and other cryptocurrencies; and |
• | other factors detailed under the section entitled “ Risk Factors |
• | Our business and the markets in which we plan to operate are new and rapidly evolving, which makes it difficult to evaluate our future prospects and the risks and challenges we may encounter. |
• | We will need to raise additional capital, which may not be available on terms acceptable to us, or at all. |
• | Our operating results may fluctuate due to the highly volatile nature of cryptocurrencies in general and, specifically, Bitcoin. |
• | If we fail to timely complete the planned construction of our sites and commence operations, it could have a material adverse effect on our business. |
• | If we are unable to successfully maintain our power and hosting arrangements or secure the sites for our data centers, on acceptable terms or at all, or if we must otherwise relocate to replacement sites, our operations may be disrupted, and our business results may suffer. |
• | We depend on third parties to provide us with certain critical equipment and may rely on components and raw materials that may be subject to price fluctuations or shortages, including ASIC chips that have been subject to an ongoing significant shortage and high innovation pace. |
• | We are exposed to risks related to disruptions or other failures in the supply chain for cryptocurrency hardware and difficulties in obtaining new hardware. |
• | Bitcoin mining activities are energy-intensive, which may restrict the geographic locations of miners and may have a negative environmental impact. Government regulators may potentially restrict the ability of electricity suppliers to provide electricity to mining operations, such as ours, or even fully or partially ban mining operations. |
• | We operate in a highly competitive industry and we compete against companies that operate in less regulated environments as well as companies with greater financial and other resources, and our business, operating results, and financial condition may be adversely affected if we are unable to respond to our competitors effectively. |
• | Our business is subject to the impact of global market, economic and political conditions that are beyond our control and that could significantly impact our business and make our financial results more volatile. |
• | We are currently operating in a period of economic uncertainty and capital markets disruption, which has been significantly impacted by geopolitical instability due to the ongoing military conflict between Russia and Ukraine. Our business, financial condition and results of operations may be materially adversely affected by any negative impact on the global economy and capital markets resulting from the conflict in Ukraine or any other geopolitical tensions. |
• | The global COVID-19 pandemic and the disruption caused by various countermeasures to reduce its spread, could adversely affect our business, prospects, financial condition, and operating results. |
• | We may be affected by price fluctuations in the wholesale and retail power markets. |
• | We will be vulnerable to severe weather conditions and natural disasters, including severe heat, winter weather events, earthquakes, fires, floods, hurricanes, as well as power outages and other industrial |
incidents, which could severely disrupt the normal operation of our business and adversely affect our results of operations. |
• | The properties in our mining network may experience damages, including damages that are not covered by insurance. |
• | implement our business model in a timely manner, in particular our ability to set up our planned cryptocurrency mining facilities in Texas; |
• | establish and maintain our commercial and supply partnerships, including our power and hosting arrangements as well as our arrangements for the supply of mining equipment; |
• | react to challenges from existing and new competitors; |
• | comply with existing and new laws and regulations applicable to our business and in our industry; and |
• | anticipate and respond to macroeconomic changes, and industry benchmarks and changes in the markets in which we plan to operate. |
• | market conditions across the broader blockchain ecosystem; |
• | investment and trading activities of highly active retail and institutional investors, cryptocurrency users, speculators and miners; |
• | financial strength of market participants; |
• | developments and innovations in cryptocurrency mining equipment, including ASIC chip designs; |
• | changes in consumer preferences and perceived value of digital assets, including due to evolving cryptographic algorithms and emerging trends in the technology securing blockchains; |
• | publicity and events relating to the blockchain ecosystem, including public perception of the impact of the blockchain ecosystem on the environment and geopolitical developments; |
• | the correlation between the prices of digital assets, including the potential that a crash in one digital asset or widespread defaults on one digital asset exchange or trading venue may cause a crash in the price of other digital assets, or a series of defaults by counterparties on digital asset exchanges or trading venues; |
• | fees and speed associated with processing Bitcoin transactions; |
• | level of interest rates and inflation; |
• | changes in the legislative or regulatory environment, or actions by governments or regulators that impact monetary policies, fiat currency devaluations, trade restrictions, the digital assets industry generally, or mining operations specifically; |
• | difficulty obtaining hardware and related installation costs; |
• | access to cost-effective sources of electrical power; |
• | adverse legal proceedings or regulatory enforcement actions, judgments, settlements, or other legal proceeding and enforcement-related costs; |
• | increases in operating expenses that we expect to incur to build-up and expand our operations and to remain competitive; |
• | system failure or outages, including with respect to our mining hardware, power supply and third-party networks; |
• | breaches of security or data privacy; |
• | loss of trust in the network due to a latent fault in the Bitcoin network; |
• | our ability to attract and retain talent; |
• | our ability to hedge risks related to our ownership of digital assets; |
• | the introduction of new digital assets, leading to a decreased adoption of Bitcoin; and |
• | our ability to compete with our existing and new competitors. |
• | increases and decreases in generation capacity; |
• | changes in power transmission or fuel transportation capacity constraints or inefficiencies; |
• | volatile weather conditions, particularly unusually hot or mild summers or unusually cold or warm winters; |
• | technological shifts resulting in changes in the demand for power or in patterns of power usage, including the potential development of demand-side management tools, expansion and technological advancements in power storage capability and the development of new fuels or new technologies for the production or storage of power; |
• | federal and state power, market and environmental regulation and legislation; and |
• | changes in capacity prices and capacity markets. |
• | the presence of construction or repair defects or other structural or building damage; |
• | any noncompliance with, or liabilities under, applicable environmental, health or safety regulations or requirements or building permit requirements; |
• | any damage resulting from extreme weather conditions or natural disasters, such as hurricanes, earthquakes, fires, floods and snow or windstorms; and |
• | claims by employees and others for injuries sustained at our properties. |
• | economic conditions in Europe and Asia, and political conditions in Eastern Europe, Asia, the Trans-Pacific region and other emerging markets; |
• | trade protection measures, such as tariff increases, and import and export licensing and control requirements; |
• | political, financial market or economic instability relating to epidemics or pandemics, including the ongoing COVID-19 pandemic (for further discussion of the risks presented by the ongoing COVID-19 pandemic, see “— The global COVID-19 pandemic and the disruption caused by various countermeasures to reduce its spread, could adversely affect our business, prospects, financial condition, and operating results. |
• | uncertainties related to any geopolitical, economic and regulatory effects or changes due to recent or upcoming domestic and international elections; |
• | the imposition of governmental economic sanctions on countries; |
• | potentially negative consequences from changes in tax laws or tax examinations; |
• | potential difficulty of enforcing agreements through some foreign legal systems; |
• | differing and, in some cases, more stringent labor regulations; |
• | potentially negative consequences from fluctuations in foreign currency exchange rates; |
• | partial or total expropriation; and |
• | differing protection of intellectual property. |
• | greater mining capabilities; |
• | more timely introduction or adoption of new technologies; |
• | preferred relationships with suppliers of mining machines and other equipment; |
• | access to more competitively priced power; |
• | greater financial resources to make acquisitions; |
• | lower labor, compliance, risk mitigation and research and development costs; |
• | larger and more mature intellectual property portfolios; |
• | greater number of applicable licenses or similar authorizations; |
• | established core business models outside of the mining or trading of digital assets, allowing them to operate on lesser margins or at a loss; |
• | operations in certain jurisdictions with lower compliance costs and greater flexibility to explore new product offerings; and |
• | substantially greater financial, technical and other resources. |
• | it is an “orthodox” investment company because it is or holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities; or |
• | it is an inadvertent investment company because, absent an applicable exemption, it owns or proposes to acquire “investment securities” having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. |
• | changes in the valuation of our deferred tax assets and liabilities; |
• | expected timing and amount of the release of any tax valuation allowances; |
• | tax effects of stock-based compensation; |
• | costs related to intercompany restructurings; |
• | changes in tax laws, regulations or interpretations thereof; or |
• | lower than anticipated future earnings in jurisdictions where we have lower statutory tax rates and higher than anticipated future earnings in jurisdictions where we have higher statutory tax rates. |
• | continued worldwide growth in the adoption and use of Bitcoin and other digital assets; |
• | government and quasi-government regulation of Bitcoin and other digital assets and their use, or restrictions on or regulation of access to and operation of the digital asset network or similar digital assets systems; |
• | the maintenance and development of the open-source software protocol of the Bitcoin network and other digital asset block-chains; |
• | changes in consumer demographics and public tastes and preferences; |
• | the availability and popularity of other forms or methods of buying and selling goods and services, including new means of using fiat currencies; |
• | general economic conditions and the regulatory environment relating to digital assets; and |
• | the impact of regulators focusing on digital assets and digital securities and the costs associated with such regulatory oversight. |
• | the reduction in mining rewards of Bitcoin, including block reward halving events, which are events that occur after a specific period of time which reduces the block reward earned by miners; |
• | disruptions, hacks, “forks”, 51% attacks, or other similar incidents affecting the Bitcoin blockchain network; |
• | hard “forks” resulting in the creation of and divergence into multiple separate networks; |
• | informal governance led by Bitcoin’s core developers that lead to revisions to the underlying source code or inactions that prevent network scaling, and which evolve over time largely based on self-determined participation, which may result in new changes or updates that affect their speed, security, usability, or value; |
• | the ability for Bitcoin blockchain network to resolve significant scaling challenges and increase the volume and speed of transactions; |
• | the ability to attract and retain developers and customers to use Bitcoin for payment, store of value, unit of accounting, and other intended uses; |
• | transaction congestion and fees associated with processing transactions on the Bitcoin network; |
• | the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin, or the transfer of Satoshi’s Bitcoin assets; |
• | negative public perception of Bitcoin or other cryptocurrencies or their reputation within the fintech influencer community or the general publicity around them; |
• | development in mathematics, technology, including in digital computing, algebraic geometry, and quantum computing that could result in the cryptography being used by Bitcoin becoming insecure or ineffective; and |
• | laws and regulations affecting the Bitcoin network or access to this network, including a determination that Bitcoin constitutes a security or other regulated financial instrument under the laws of any jurisdiction. |
• | being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations” disclosure; |
• | not being required to comply with the requirement of auditor attestation of our internal controls over financial reporting; |
• | not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements; |
• | reduced disclosure obligations regarding executive compensation; and |
• | not being required to hold a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. |
• | you may not be able to liquidate your investment in shares of our common stock; |
• | the market price of shares of our common stock or public warrants may experience significant price volatility; and |
• | there may be less efficiency in carrying out your purchase and sale orders. |
• | changes in financial estimates by us or by any securities analysts who might cover our stock; |
• | proposed changes to laws in the U.S. or foreign jurisdictions relating to our business, or speculation regarding such changes; |
• | delays, disruptions or other failures in the supply of cryptocurrency hardware, including chips; |
• | conditions or trends in the digital assets industries and, specifically cryptoasset mining space; |
• | stock market price and volume fluctuations of comparable companies; |
• | fluctuations in prices of Bitcoin and other cryptocurrencies; |
• | announcements by us or our competitors of significant acquisitions, strategic partnerships or divestitures; |
• | significant lawsuits or announcements of investigations or regulatory scrutiny of its operations or lawsuits filed against us; |
• | recruitment or departure of key personnel; |
• | investors’ general perception of our business or management; |
• | trading volume of our common stock; |
• | overall performance of the equity markets; |
• | publication of research reports about us or our industry or positive or negative recommendations or withdrawal of research coverage by securities analysts; |
• | the impacts of the ongoing COVID-19 pandemic and related restrictions; |
• | general political and economic conditions; and |
• | other events or factors, many of which are beyond our control. |
• | existing stockholders’ proportionate ownership interest in us will decrease; |
• | the amount of cash available per share, including for payment of dividends in the future, may decrease; |
• | the relative voting strength of each previously outstanding our common stock may be diminished; and |
• | the market price of our common stock or public warrants may decline. |
• | the limitation of the liability of, and the indemnification of, its directors and officers; |
• | a prohibition on actions by its stockholders except at an annual or special meeting of stockholders; |
• | a prohibition on actions by its stockholders by written consent; and |
• | the ability of the Board to issue preferred stock without stockholder approval, which could be used to institute a “poison pill” that would work to dilute the stock ownership of a potential hostile acquirer, effectively preventing acquisitions that have not been approved by the Board. |
• | any derivative action or proceeding brought on our behalf; |
• | any action asserting a breach of fiduciary duty; |
• | any action asserting a claim against us arising under the DGCL or the Governing Documents; and |
• | any action asserting a claim against us that is governed by the internal-affairs doctrine or otherwise related to our internal affairs. |
• | the cancellation of each issued and outstanding share of Cipher common stock; and |
• | the conversion into the right to receive a number of shares of our common stock based upon the Exchange Ratio. |
Vendor |
Agreement Date |
Maximum Purchase Commitment* |
Deposits Paid |
Expected Shipping | ||||||||
Bitmain Technologies Limited** |
August 20, 2021 and August 30, 2021 | $ | 171,135,000 | $ | 75,024,010 | January 2022 - September 2022 | ||||||
SuperAcme Technology (Hong Kong)** |
September 2, 2021 | 222,400,800 | 22,240,080 | July 2022 - December 2022 | ||||||||
Bitfury Top HoldCo B.V. |
October 11, 2021 | * | ** | 10,000,000 | **** | *** | ||||||
Bitfury USA Inc. and other vendors (primarily for BBACs) |
Various | 44,594,951 | 7,592,224 | |||||||||
|
|
|
|
|||||||||
Total |
$ | 438,130,751 | $ | 114,856,314 | ||||||||
|
|
|
|
* | Maximum purchase commitment does not consider discounts that we may qualify for with the respective vendors, which could reduce the total cost of the miners. |
** | Pursuant to our agreements with Bitmain and SuperAcme, we are responsible for all logistics costs related to transportation, packaging for transportation and insurance related to the delivery of the miners. |
*** | As of December 31, 2021, there were no mutually executed order confirmations and, as such, we had no binding commitments to acquire miners from Bitfury Top HoldCo. |
**** | On April 8, 2022, this deposit was offset against a cancellation of 2,890,173 shares of our common stock held by Bitfury Top HoldCo under the Waiver Agreement. For further details, see “ Certain Relationships and Related Person Transactions—Waiver Agreement |
Eleven Months Ended December 31, 2021 |
For the period January 7, 2021 (inception) through January 31, 2021 |
|||||||
Reconciliation of non-GAAP loss from operations: |
||||||||
Operating loss |
$ | (72,151,811 | ) | $ | (3,480 | ) | ||
Depreciation |
4,867 | 5 | ||||||
Stock compensation expense |
63,765,473 | — | ||||||
|
|
|
|
|||||
Non-GAAP loss from operations |
$ | (8,381,471 | ) | $ | (3,475 | ) | ||
|
|
|
|
Eleven Months Ended December 31, 2021 |
For the period January 7, 2021 (inception) through January 31, 2021 |
|||||||
Reconciliation of non-GAAP net loss: |
||||||||
Net loss |
$ | (72,152,564 | ) | $ | (3,480 | ) | ||
Non-cash adjustments to net loss |
||||||||
Depreciation |
4,867 | 5 | ||||||
Change in fair value of warrant liability |
21,828 | — | ||||||
Stock compensation expense |
63,765,473 | — | ||||||
|
|
|
|
|||||
Total non-cash adjustments to net loss |
63,792,168 | 5 | ||||||
|
|
|
|
|||||
Non-GAAP net loss |
$ | (8,360,396 | ) | $ | (3,475 | ) | ||
|
|
|
|
|||||
Reconciliation of non-GAAP basic and diluted net loss per share: |
||||||||
Basic and diluted net loss per share |
$ | (0.33 | ) | $ | — | |||
Depreciation of fixed assets (per share) |
— | — | ||||||
Change in fair value of warrant liability (per share) |
— | — | ||||||
Stock compensation expense (per share) |
0.29 | — | ||||||
|
|
|
|
|||||
Non-GAAP basic and diluted net loss per share |
$ | (0.04 | ) | $ | — | |||
|
|
|
|
• | Step 1: Identify the contract with the customer |
• | Step 2: Identify the performance obligations in the contract |
• | Step 3: Determine the transaction price |
• | Step 4: Allocate the transaction price to the performance obligations in the contract |
• | Step 5: Recognize revenue when the company satisfies a performance obligation |
• | Variable consideration |
• | Constraining estimates of variable consideration |
• | The existence of a significant financing component in the contract |
• | Noncash consideration |
• | Consideration payable to a customer |
• | block rewards |
• | transaction fees |
Name |
Age |
Title | ||
Tyler Page |
46 | Chief Executive Officer and Director | ||
Edward Farrell |
61 | Chief Financial Officer | ||
Patrick Kelly |
43 | Chief Operating Officer | ||
William Iwaschuk |
46 | Chief Legal Officer | ||
Cary Grossman |
68 | Director | ||
Caitlin Long |
52 | Director | ||
James Newsome |
62 | Director | ||
Wesley (Bo) Williams |
45 | Director | ||
Holly Morrow Evans |
46 | Director | ||
Robert Dykes |
72 | Director |
• | appointing, compensating, retaining, evaluating, terminating and overseeing Cipher’s independent registered public accounting firm; |
• | discussing with Cipher’s independent registered public accounting firm their independence from management; |
• | reviewing with Cipher’s independent registered public accounting firm the scope and results of their audit; |
• | pre-approving all audit and permissible non-audit services to be performed by Cipher’s independent registered public accounting firm; |
• | overseeing the financial reporting process and discussing with management and Cipher’s independent registered public accounting firm the interim and annual financial statements that Cipher’s files with the SEC; |
• | reviewing and monitoring Cipher’s accounting principles, accounting policies, financial and accounting controls and compliance with legal and regulatory requirements; and |
• | establishing procedures for the confidential anonymous submission of concerns regarding questionable accounting, internal controls or auditing matters. |
• | reviewing and setting or making recommendations to the Board regarding the compensation of Cipher’s executive officers; |
• | making recommendations to the Board regarding the compensation of the Board; |
• | reviewing and approving or making recommendations to the Board regarding Cipher’s incentive compensation and equity-based plans and arrangements; and |
• | appointing and overseeing any compensation consultants. |
• | identifying and recommending candidates for membership on the Board; |
• | recommending directors to serve on the Board committees; |
• | reviewing and recommending to the Board any changes to our corporate governance principles; |
• | reviewing proposed waivers of the code of conduct for directors and executive officers; |
• | overseeing the process of evaluating the performance of the Board; and |
• | advising the Board on corporate governance matters. |
• | Rodney Tyler Page, Chief Executive Officer; |
• | Edward Farrell, Chief Financial Officer; |
• | Patrick Kelly, Chief Operating Officer; and |
• | William Iwaschuk, Chief Legal Officer. |
Name and Principal Position |
Year |
Salary ($) (1) |
Stock Awards ($) (2) |
Total ($) |
||||||||||||
Rodney Tyler Page |
2021 | 225,000 | 102,427,628 | 102,652,628 | ||||||||||||
Chief Executive Officer |
||||||||||||||||
Edward Farrell |
2021 | 150,000 | 7,634,074 | 7,784,074 | ||||||||||||
Chief Financial Officer |
||||||||||||||||
Patrick Kelly |
2021 | 150,000 | 7,634,074 | 7,784,074 | ||||||||||||
Chief Operating Officer |
||||||||||||||||
William Iwaschuk |
2021 | 150,000 | 7,634,074 | 7,784,074 | ||||||||||||
Chief Legal Officer |
(1) | Amounts reflect the actual base salaries paid to each named executive officer in respect of fiscal year 2021, which reflect that we began paying our named executive officers base salaries on April 1, 2021. |
(2) | Amounts reflect the full grant-date fair value of restricted stock unit, or RSU, awards granted during 2021 computed in accordance with ASC Topic 718, rather than the amounts paid to or realized by the named individual. The RSUs granted to Mr. Page are subject to both service-based and performance-based vesting conditions. As required pursuant to SEC disclosure rules, the grant-date fair values of these awards included in the table above for Mr. Page were computed based on the probable outcomes of the performance conditions as of the applicable grant date. Assuming maximum achievement of the performance conditions, the value of the RSUs granted to Mr. Page, as of the grant date, is $104,101,001. The RSUs granted to the other named executive officers were subject to service-based vesting conditions only. For information regarding the assumptions used to calculate the value of all RSU awards made to named executive officers see “ Management’s Discussion and Analysis of Financial Condition and Results of Operations—Summary of Critical Accounting Policies—Share-based compensation. |
• | medical, dental and vision benefits; |
• | medical and dependent care flexible spending accounts; |
• | short-term and long-term disability insurance; and |
• | life and accidental death & dismemberment insurance. |
Stock Awards |
||||||||||||||||||||
Name |
Grant Date |
Number of Shares or Units of Stock That Have Not Vested (#) |
Market Value of Shares or Units of Stock That Have Not Vested ($) (1) |
Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) (1) |
|||||||||||||||
Rodney Tyler Page |
11/17/2021 | 2,838,473 | (2) |
13,142,130 | 4,257,710 | (3) |
19,713,197 | |||||||||||||
Edward Farrell |
11/17/2021 | 936,696 | (4) |
4,336,902 | — | — | ||||||||||||||
Patrick Kelly |
11/17/2021 | 936,696 | (4) |
4,336,902 | — | — | ||||||||||||||
William Iwaschuk |
11/17/2021 | 936,696 | (4) |
4,336,902 | — | — |
(1) | Amounts are calculated by multiplying the number of RSUs showing in the table by $4.63, the closing market price of our stock on December 31, 2021. |
(2) | Represents all of the Service-Based RSUs granted to Mr. Page as described in the narrative disclosure above. |
(3) | Represents all of the Performance-Based RSUs granted to Mr. Page as described in the narrative disclosure above. |
(4) | Represents the RSUs that were granted to each of Messrs. Farrell, Kelly and Iwaschuk and are subject to service-based vesting as described in the narrative above. |
Name |
Fees Earned or Paid in Cash ($) (1) |
Stock Awards ($) (2) |
Total ($) |
|||||||||
Cary Grossman |
41,667 | 100,000 | 141,667 | |||||||||
Caitlin Long |
37,500 | 100,000 | 137,500 | |||||||||
James Newsome |
50,000 | 100,000 | 150,000 | |||||||||
Wesley (Bo) Williams |
40,000 | 100,000 | 140,000 | |||||||||
Holly Morrow Evans |
39,167 | 100,000 | 139,167 | |||||||||
Robert Dykes |
42,500 | 100,000 | 142,500 |
(1) | Amounts reflect the portion of the annual cash retainers that the non-employee directors earned for their service in respect of 2021 under our non-employee director compensation policy, which became effective as of November 10, 2021. |
(2) | Amounts reflect the full grant-date fair value of stock awards granted during 2021 computed in accordance with ASC Topic 718, rather than the amounts paid to or realized by the named individual. For information regarding the assumptions used to calculate the value of all stock awards made to our directors see “ Management’s Discussion and Analysis of Financial Condition and Results of Operations—Summary of Critical Accounting Policies—Share-based compensation. |
• | any person who is, or at any time during the applicable period was, one of Cipher’s executive officers or directors; |
• | any person who is known by Cipher to be the beneficial owner of more than 5% of Cipher voting stock; |
• | any immediate family member of any of the foregoing persons, which means any child, stepchild, parent, stepparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, in- law or sister-in-law |
• | any firm, corporation or other entity in which any of the foregoing persons is a partner or principal, or in a similar position, or in which such person has a 10% or greater beneficial ownership interest. |
• | stockholders who beneficially own more than 5% of the outstanding shares of our common stock; |
• | each of our named executive officers and directors; and |
• | all executive officers and directors, as a group. |
Name of Beneficial Owners |
Number of Shares of Common Stock Beneficially Owned |
Percentage of Outstanding Common Stock |
||||||
5% Stockholders and Affiliated Entities: |
||||||||
Bitfury Top HoldCo (1) |
203,109,827 | 82.14 | % | |||||
GW Sponsor 2, LLC (2) |
562,500 | * | ||||||
Directors and Named Executive Officers |
||||||||
Tyler Page |
3,155,614 | 1.28 | % | |||||
Edward Farrell |
130,258 | * | ||||||
Patrick Kelly |
156,322 | * | ||||||
William Iwaschuk |
135,402 | * | ||||||
Cary Grossman (3) |
769,769 | * | ||||||
Caitlin Long |
12,269 | * | ||||||
James Newsome |
12,269 | * | ||||||
Wesley (Bo) Williams |
12,269 | * | ||||||
Holly Morrow Evans |
12,269 | * | ||||||
Robert Dykes |
12,269 | * | ||||||
All Directors and Named Executive Officers as a group (10 individuals) |
4,408,710 | (3) |
1.78 | % |
* | Represents beneficial ownership of less than 1%. |
(1) | Based on a Schedule 13D/A filed on April 12, 2022, consists of (i) 6,000,000 shares of common stock held by Bitfury Holding and (ii) 197,109,827 shares of common stock held by Bitfury Top HoldCo. Bitfury Top HoldCo is the sole owner of Bitfury Holding. As a result, Bitfury Top HoldCo may be deemed to share beneficial ownership the shares of common stock held by Bitfury Holding. Valerijs Vavilovs is the sole owner of V3 Holding Limited (“V3”), which is the majority owner of Bitfury Group Limited (“BGL”). BGL is the sole owner of Bitfury Top HoldCo. As a result of the foregoing relationships, each of Mr. Vavilovs, |
V3 and BGL may be deemed to share beneficial ownership of the common stock beneficially owned by Bitfury Top Holdco. Bitfury Top HoldCo, BGL, V3 and Mr. Vavilovs have shared voting and dispositive power with respect to the securities reported. Bitfury Holding has shared voting and dispositive power over 6,000,000 shares of the Company’s common stock. The business address of Bitfury Top HoldCo, Bitfury Holding and Mr. Vavilovs is Strawinskylaan 3051, 1077ZX Amsterdam, the Netherlands, the business address of V3 is 4th Floor Harbour Place, 103 South Church Street, PO Box 10240, George Town, Grand Cayman KY1-1002, Cayman Islands, BS1 6EG, the business address of BGL is 6th Floor One London Wall, London, United Kingdom EC2Y 5EB. |
(2) | GW Sponsorr 2, LLC (the “Sponsor”) is controlled by Mr. Grossman. Mr. Grossman has sole voting and dispositive power with respect to the securities disclosed above. The business address of the Sponsor and for Cary Grossman is 4265 San Felipe, Suite 603, Houston, TX 77027. |
(3) | Based on a Form 4 filed on November 19, 2021, consists of (i) 207,269 shares of common stock held directly by Cary Grossman and (ii) 562,500 shares of common stock held by the Sponsor, as noted in the table above). The Sponsor is controlled by Mr. Grossman. Mr. Grossman has sole voting and dispositive power with respect to the securities disclosed above. The business address of the Sponsor and for Cary Grossman is 4265 San Felipe, Suite 603, Houston, TX 77027. |
• | up to 4,106,342 PIPE Shares; |
• | up to 1,525,000 shares of Initial Stockholder Shares; |
• | up to 757,500 shares of common stock held by the Sponsor; |
• | up to 562,500 shares of common stock held by GW Sponsor 2, LLC; |
• | up to 563,500 shares of common stock held by the Anchor Investors; |
• | up to 6,000,000 shares of common stock held by Bitfury Holding B.V; and |
• | up to 228,000 Private Placement Shares; |
• | up to 114,000 shares of common stock issuable upon the exercise of Private Placement Warrants; and |
• | up to 85,500 Private Placement Warrants. |
Shares of Common Stock |
||||||||||||||||
Name of Selling Stockholder |
Number Beneficially Owned Prior to Offering |
Number Being Registered Hereby(*) |
Number Beneficially Owned After this Offering |
Percentage Owned After Offering(**) |
||||||||||||
Alexander Morcos |
500,000 | 500,000 | — | — | ||||||||||||
American Committee for Shaare Zedek Hospital in Jerusalem, Inc. |
2,500 | 2,500 | — | — | ||||||||||||
Ballet Theatre Foundation, Inc. |
250,000 | 250,000 | — | — | ||||||||||||
Bitfury Holding B.V. (2) |
6,000,000 | 6,000,000 | — | — | ||||||||||||
Cary Grossman |
195,000 | 195,000 | — | — | ||||||||||||
CC Arb West, LLC (3) |
99,235 | 99,235 | — | — | ||||||||||||
CC Arbitrage, Ltd. (3) |
22,526 | 22,526 | — | — | ||||||||||||
David Pauker |
47,500 | 47,500 | — | — | ||||||||||||
Divenire Holding |
200,000 | 200,000 | — | — | ||||||||||||
Douglas Wurth |
195,000 | 195,000 | — | — | ||||||||||||
Fred S. Zeidman |
195,000 | 195,000 | — | — | ||||||||||||
Gray’s Creek Capital Partners Fund I, LP (9) |
200,000 | 200,000 | — | — | ||||||||||||
GW Sponsor 2, LLC (10) |
562,500 | 562,500 | — | — | ||||||||||||
Harris County Hospital District Foundation |
2,500 | 2,500 | — | — | ||||||||||||
I-B Good Works, LLC(11) |
757,500 | 757,500 | — | — | ||||||||||||
Iridian Raven Fund, LP (12) |
74,274 | 74,274 | — | — | ||||||||||||
James M McCrory |
180,101 | 180,101 | — | — | ||||||||||||
John J. Lendrum III |
47,500 | 47,500 | — | — | ||||||||||||
KC Cipher SPV, LLC (13) |
333,500 | 333,500 | — | — | ||||||||||||
Magnetar Financial LLC (14) |
254,875 | 254,875 | — | — | ||||||||||||
Memorial Hermann Foundation |
47,500 | 47,500 | — | — | ||||||||||||
Mission Gate Inc. (15) |
1,482,048 | 1,482,048 | ||||||||||||||
Morgan Stanley Investment Management Inc. (16) |
4,606 | 4,606 | — | — | ||||||||||||
Paolo E. Floriani |
35,000 | 35,000 | — | — | ||||||||||||
Paul Fratamico |
47,500 | 47,500 | — | — | ||||||||||||
Peridian Fund, L.P (17) |
169,375 | 169,375 | — | — | ||||||||||||
Polar Multi-Strategy Master Fund (18) |
197,875 | 197,875 | — | — | ||||||||||||
Shelley Leonard |
160,000 | 160,000 | — | — | ||||||||||||
Social Accountability International, Inc. |
125,000 | 125,000 | — | — | ||||||||||||
Stichting Juridisch Eigendom Mint Tower Arbitrage Fund (19) |
551,975 | 551,975 | — | — | ||||||||||||
Suhas and Felicitie Daftuar |
500,000 | 500,000 | — | — | ||||||||||||
Tahira Rehmatullah |
47,500 | 47,500 | — | — | ||||||||||||
The Children’s Aid Society |
125,000 | 125,000 | — | — | ||||||||||||
The National World War II Museum, Inc. |
2,500 | 2,500 | — | — | ||||||||||||
The University of Texas Foundation, Inc. |
175,000 | 175,000 | — | — | ||||||||||||
The Washington University |
10,000 | 10,000 | — | — | ||||||||||||
Ulter GW LLC (20) |
17,952 | 17,952 | — | — | ||||||||||||
University of St. Thomas |
10,000 | 10,000 | — | — | ||||||||||||
|
|
|
|
|||||||||||||
TOTAL |
13,828,342 |
13,828,342 |
||||||||||||||
|
|
|
|
Private Placement Warrants to Purchase Common Stock |
||||||||||||||||
Name of Selling Stockholder |
Number Beneficially Owned Prior to Offering |
Number Being Registered Hereby |
Number Beneficially Owned After this Offering |
Percentage Owned After Offering |
||||||||||||
Magnetar Financial LLC (14) |
28,500 | 28,500 | — | — | ||||||||||||
Stichting Juridisch Eigendom Mint Tower Arbitrage Fund (18) |
28,500 | 28,500 | — | — | ||||||||||||
Polar Multi-Strategy Master Fund (17) |
28,500 | 28,500 | — | — | ||||||||||||
|
|
|
|
|||||||||||||
TOTAL |
85,500 |
85,500 |
— |
— |
||||||||||||
|
|
|
|
(*) | The amounts set forth in this column are the number of shares of common stock that may be offered by such Selling Securityholder using this prospectus. These amounts do not represent any other shares of our common stock that the Selling Securityholder may own beneficially or otherwise. |
(**) | The percentage of shares to be beneficially owned after completion of the offering is calculated on the basis of 247,284,100 shares of common stock outstanding. |
(1) | The general partner of Athanor Master Fund, LP (“AMF”) is Athanor Capital Partners, LP (“GP”) and the general partner of Athanor International Master Fund, LP (“AIMF”) is Athanor International Fund GP, LP (“GP”). The GPs together are controlled by Parvinder Thiara, who has ultimate voting and investment control over the shares held by AMF and AIMF and, accordingly, may be deemed to have beneficial ownership of such shares. The business address of AMF and AIMF is c/o Mourant Ozannes Corporate Services, 94 Solaris Avenue, PO Box 1348, Camana Bay, Grand Cayman KY1-1108, Cayman Islands. |
(2) | Bitfury Top HoldCo is the sole owner of Bitfury Holding B.V. (“Bitfury Holding”). As a result, Bitfury Top HoldCo may be deemed to share beneficial ownership the shares of common stock held by Bitfury Holding. Valerijs Vavilovs is the sole owner of V3 Holding Limited (“V3”), which is the majority owner of Bitfury Group Limited (“BGL”). BGL is the sole owner of Bitfury Top HoldCo. As a result of the foregoing relationships, each of Mr. Vavilovs, V3 and BGL may be deemed to share beneficial ownership of the common stock beneficially owned by Bitfury Top Holdco. The business address of Bitfury Top HoldCo, Bitfury Holding and Mr. Vavilovs is Strawinskylaan 3051, 1077ZX Amsterdam, the Netherlands, the business address of V3 is 4th Floor Harbour Place, 103 South Church Street, PO Box 10240, George Town, Grand Cayman KY1-1002, Cayman Islands, BS1 6EG, the business address of BGL is 6th Floor One London Wall, London, United Kingdom EC2Y 5EB. |
(3) | Castle Creek Arbitrage LLC is the investment manager acting with sole discretionary authority for the selling stockholder. Allan Weine has sole voting and investment discretion of Castle Creek Arbitrage LLC. Castle Creek Arbitrage LLC and Allan Weine both disclaim beneficial ownership of the securities owned by the selling stockholders. The business address of the foregoing individual and entities is 190 South Lasalle Street Suite 3050 Chicago, IL 60603. |
(4) | Managed by direct or indirect subsidiaries of FMR LLC. Abigail P. Johnson is a Director, the Chairman, the Chief Executive Officer and the President of FMR LLC. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders have entered into a shareholders’ voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders’ voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. Neither FMR LLC nor Abigail P. Johnson has the sole power to vote or direct the voting of the shares owned directly by the various investment companies registered under the Investment Company Act (“Fidelity Funds”) advised by Fidelity Management & Research Company (“FMR Co”), a wholly owned subsidiary of FMR LLC, which power resides with the Fidelity Funds’ Boards of Trustees. Fidelity Management & Research Company carries out the voting of the shares under written guidelines established by the Fidelity Funds’ Boards of Trustees. |
(5) | Managed by direct or indirect subsidiaries of FMR LLC. Abigail P. Johnson is a Director, the Chairman, the Chief Executive Officer and the President of FMR LLC. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders |
have entered into a shareholders’ voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders’ voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. Neither FMR LLC nor Abigail P. Johnson has the sole power to vote or direct the voting of the shares owned directly by the various investment companies registered under the Investment Company Act (“Fidelity Funds”) advised by Fidelity Management & Research Company (“FMR Co”), a wholly owned subsidiary of FMR LLC, which power resides with the Fidelity Funds’ Boards of Trustees. Fidelity Management & Research Company carries out the voting of the shares under written guidelines established by the Fidelity Funds’ Boards of Trustees. |
(6) | Managed by direct or indirect subsidiaries of FMR LLC. Abigail P. Johnson is a Director, the Chairman, the Chief Executive Officer and the President of FMR LLC. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders have entered into a shareholders’ voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders’ voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. Neither FMR LLC nor Abigail P. Johnson has the sole power to vote or direct the voting of the shares owned directly by the various investment companies registered under the Investment Company Act (“Fidelity Funds”) advised by Fidelity Management & Research Company (“FMR Co”), a wholly owned subsidiary of FMR LLC, which power resides with the Fidelity Funds’ Boards of Trustees. Fidelity Management & Research Company carries out the voting of the shares under written guidelines established by the Fidelity Funds’ Boards of Trustees. |
(7) | Managed by direct or indirect subsidiaries of FMR LLC. Abigail P. Johnson is a Director, the Chairman, the Chief Executive Officer and the President of FMR LLC. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders have entered into a shareholders’ voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders’ voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. Neither FMR LLC nor Abigail P. Johnson has the sole power to vote or direct the voting of the shares owned directly by the various investment companies registered under the Investment Company Act (“Fidelity Funds”) advised by Fidelity Management & Research Company (“FMR Co”), a wholly owned subsidiary of FMR LLC, which power resides with the Fidelity Funds’ Boards of Trustees. Fidelity Management & Research Company carries out the voting of the shares under written guidelines established by the Fidelity Funds’ Boards of Trustees. |
(8) | Managed by direct or indirect subsidiaries of FMR LLC. Abigail P. Johnson is a Director, the Chairman, the Chief Executive Officer and the President of FMR LLC. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders have entered into a shareholders’ voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders’ voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. Neither FMR LLC nor Abigail P. Johnson has the sole power to vote or direct the voting of the shares owned directly by the various investment companies registered under the Investment Company Act (“Fidelity Funds”) advised by Fidelity Management & Research Company (“FMR Co”), a wholly owned subsidiary of FMR LLC, which power resides with the Fidelity Funds’ Boards of Trustees. Fidelity Management & Research Company carries out the voting of the shares under written guidelines established by the Fidelity Funds’ Boards of Trustees. |
(9) | Gray’s Creek Capital Partners Fund I, LP is managed by Gray’s Creek Capital Advisors, LLC and Gray’s Creek Capital Partners, GP. Jason R. Little and Gerrit B. Parker are the natural persons who have voting or investment |
control over the shares held by Gray’s Creek Capital Advisors, LLC and Gray’s Creek Capital Partners, GP, and thus have voting or investment control over the securities being offered. The business address of the foregoing individuals and entities is 500 Post Road East, Suite 233 Westport, CT 06880. |
(10) | GW Sponsor 2, LLC is controlled by Cary Grossman. Mr. Grossman has sole voting and dispositive power with respect to the securities held be GW Sponsor 2, LLC. |
(11) | Shelley Leonard is a managing member of I-B Good Works, LLC and may be deemed to be the beneficial owner of the common stock held by I-B Good Works, LLC. Shelley Leonard disclaims beneficial ownership of such securities except to the extent of any pecuniary interests therein. The business address of Shelley Leonard is 1208 Shady Lane N., Keller, Texas 76248. |
(12) | Iridian Asset Management LLC (“Iridian Asset Management”) is the investment manager of Iridian Raven Fund, LP and has voting and investment power over the securities being registered for resale. Todd D. Raker exercises control over Iridian Asset Management LLC and voting investment power over the shares, and disclaim beneficial ownership of such shares. The business address of the foregoing entities and individual is 276 Post Road West, Westport, CT 06880. |
(13) | Brian Rathjen is a managing member of KC Cipher SPV, LLC and may be deemed to be the beneficial owner of the common stock held by KC Cipher SPV, LLC. Brian Rathjen disclaims beneficial ownership of such securities except to the extent of any pecuniary interests therein. The business address of the foregoing individual and entity is 39 Broadway, Suite 1640, New York, NY 10005. |
(14) | Includes 28,500 shares of common stock issuable upon the exercise of Private Placement Warrants. The registered holders of the referenced securities to be registered are the following funds and accounts that are managed by Magnetar Financial LLC (“MFL”), which serves as investment manager of each Purpose Alternative Credit Fund—F LLC, Purpose Alternative Credit Fund—T LLC, Magnetar Constellation Master Fund, Ltd., Magnetar Constellation Fund II, Ltd., Magnetar SC Fund Ltd., and Magnetar Xing He Master Fund Ltd. MFL is the manager of Magnetar Lake Credit Fund LLC. MFL is the general partner of Magnetar Structured Credit Fund, LP (together with all of the foregoing funds, the “Magnetar Funds”). In such capacities, MFL exercises voting and investment power over the securities listed above held for the accounts of the Magnetar Funds. MFL is a registered investment adviser under Section 203 of the Investment Advisers Act of 1940, as amended. Magnetar Capital Partners LP (“MCP”) is the sole member and parent holding company of MFL. Supernova Management LLC (“Supernova”) is the sole general partner of MCP. The manager of Supernova is Alec N. Litowitz, a citizen of the United States of America. Each of the Magnetar Funds, MFL, MCP, Supernova and Alec N. Litowitz disclaim beneficial ownership of these securities except to the extent of their pecuniary interest in the securities. Shares and warrants shown include only the securities being registered for resale and may not incorporate all interests deemed to be beneficially held by the registered holders described above or by other investment funds managed or advised by MFL. |
(15) | Mission Gate Inc. is a venture capital firm, managing the private wealth of George Bachiashvili, its sole shareholder and director, exclusively. Business address of the entity is Hunkins Waterfront Plaza, Suite 556, Main Street, Charlestown, Nevis. |
(16) | Morgan Stanley Investment Management Inc. is the investment adviser of Bell Atlantic Master Trust and holds voting and dispositive power with respect to shares of record held by Bell Atlantic Master Trust. The address of Bell Atlantic Master Trust is 522 Fifth Avenue, New York, NY 10036. |
(17) | Voting and investment power over the interests held by Peridian Fund, L.P. (“Peridian”) resides with its investment manager, Periscope Capital Inc. Jamie Wise is the Chief Executive Officer of Periscope Capital Inc. and may be deemed to be the beneficial owner of the interests held by Peridian. Jamie Wise and Periscope Capital Inc., however, disclaim any beneficial ownership of the interests held by Peridian. The address of the foregoing individual and entities is c/o 333 Bay Street, Suite 1240, Toronto, ON, M5H 2R2. |
(18) | Includes 28,500 shares of common stock issuable upon the exercise of GWAC Private Placement Warrants. Polar Multi-Strategy Master Fund (“Polar Fund”) is under management by Polar Asset Management Partners Inc. (“PAMPI”). PAMPI serves as investment advisor of the Polar Fund and has control and discretion over the shares held by the Polar Fund. As such, PAMPI may be deemed the beneficial owner of the shares held by the Polar Fund. PAMPI disclaims any beneficial ownership of the reported shares other than to the extent of any pecuniary interest therein. The business address of the Polar Fund is c/o Polar Asset Management Partners Inc., 16 York Street, Suite 2900, Toronto, ON M5J 0E6. |
(19) | Includes 28,500 shares of common stock issuable upon the exercise of Private Placement Warrants. Voting and investment power over the assets held by Stichting Juridisch Eigendom Mint Tower Arbitrage Fund (“MTAF”) |
resides with its investment manager, Mint Tower Capital Management B.V.. Ramon Heusen, Joris Paulus Hoedemaekers, Marcel Voogel and Wilrik Fokko Sinia are the directors of Mint Tower Capital Management B.V. and may be deemed to be the beneficial owner of the interests held by MTAF. Ramon Heusen, Joris Paulus Hoedemaekers, Marcel Voogel, Wilrik Fokko Sinia and Mint Tower Capital Management B.V., however, disclaim any beneficial ownership of the assets held by MTAF. The business address of the foregoing entities is Beursplein 5, 1012 JW Amsterdam, The Netherlands. |
(20) | EVC Fintech Management LLC is the investment manager acting with sole discretionary authority for the selling securityholder. Roman Sobachevskiy has sole voting and investment discretion of EVC Fintech Management LLC. EVC Fintech Management LLC and Roman Sobachevskiy both disclaim beneficial ownership of the securities owned by the selling securityholder. The business address of the foregoing individual and entities is 16192 Coastal Highway, Lewes, DE 19958. |
• | in whole and not in part; |
• | at a price of $0.01 per Warrant; |
• | upon a minimum of 30 days’ prior written notice of redemption to each warrant holder; and |
• | if, and only if, the closing price of our common stock equals or exceeds $18.00 per share (as adjusted for share splits, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three trading days before we send the notice of redemption to the warrant holders. |
• | ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
• | one or more underwritten offerings; |
• | block trades (which may involve crosses) in which the broker-dealer will attempt to sell the shares of common stock or warrants as agent, but may position and resell a portion of the block as principal to facilitate the transaction; |
• | purchases by a broker-dealer as principal and resale by the broker-dealer for its accounts; |
• | an exchange distribution and/or secondary distribution in accordance with the rules of the applicable exchange; |
• | privately negotiated transactions; |
• | distributions to their employees, partners, members or stockholders; |
• | short sales (including short sales “against the box”) effected after the date of the registration statement of which this prospectus is a part is declared effective by the SEC; |
• | through the writing or settlement of standardized or over-the-counter |
• | in market transactions, including transactions on a national securities exchange or quotations service or over-the-counter |
• | by pledge to secure debts and other obligation; |
• | directly to purchasers, including our affiliates and stockholders, in a rights offering or otherwise; |
• | through agents; |
• | broker-dealers may agree with the Selling Securityholders to sell a specified number of such shares of common stock or warrants at a stipulated price per share or warrant; and |
• | through a combination of any of these methods or any other method permitted by applicable law. |
• | at a fixed price or prices, which may be changed from time to time; |
• | at market prices prevailing at the time of sale; |
• | at prices relating to the prevailing market prices; or |
• | at negotiated prices. |
• | the name of the selling security holder; |
• | the number of common stock and warrants being offered; |
• | the terms of the offering; |
• | the names of the participating underwriters, broker-dealers or agents; |
• | any discounts, commissions or other compensation paid to underwriters or broker-dealers and any discounts, commissions or concessions allowed or reallowed or paid by any underwriters to dealers; |
• | the public offering price; |
• | the estimated net proceeds to us from the sale of the common stock and warrants; |
• | any delayed delivery arrangements; and |
• | other material terms of the offering. |
• | 1% of the total number of our common stock then outstanding; or |
• | the average weekly reported trading volume of the our common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale. |
• | the issuer of the securities that was formerly a shell company has ceased to be a shell company; |
• | the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act; |
• | the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding twelve months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and |
• | at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company. |
F-2 |
||||
F-3 |
||||
F-4 |
||||
F-5 |
||||
F-6 |
||||
F-7 |
December 31, 2021 |
January 31, 2021 |
|||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | $ | — | |||||
Prepaid expenses |
— | |||||||
Total current assets |
— | |||||||
Property and equipment, net |
||||||||
Deposits on equipment |
— | |||||||
Deferred offering costs |
— | |||||||
Deferred investment costs |
— | |||||||
Security deposits |
— | |||||||
Total assets |
$ | $ | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued expenses |
||||||||
Total current liabilities |
||||||||
Warrant liability |
— | |||||||
Total liabilities |
||||||||
Commitments and contingencies (Note 9) |
||||||||
Stockholders’ equity (deficit) |
||||||||
Preferred stock, $ |
||||||||
Common stock, $ |
||||||||
Subscription receivable |
— | ( |
) | |||||
Additional paid-in capital |
( |
) | ||||||
Treasury stock, at par, |
( |
) | — | |||||
Accumulated deficit |
( |
) | ( |
) | ||||
Total stockholders’ equity (deficit) |
( |
) | ||||||
Total liabilities and stockholders’ equity (deficit) |
$ | $ | ||||||
Eleven Months Ended December 31, 2021 |
For the period January 7, 2021 (inception) through January 31, 2021 |
|||||||
Costs and expenses |
||||||||
General and administrative |
$ | $ | ||||||
Depreciation |
||||||||
Total costs and expenses |
||||||||
Operating loss |
( |
) | ( |
) | ||||
Other expense |
||||||||
Interest income |
— | |||||||
Interest expense |
( |
) | — | |||||
Change in fair value of warrant liability |
— | |||||||
Total other expense |
( |
) | — | |||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Basic and diluted net loss per share |
$ | ( |
) | $ | — | |||
Basic and diluted weighted average number of shares outstanding |
— |
Preferred Stock |
Common Stock |
Treasury Stock |
Total |
|||||||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Subscription Receivable |
Additional Paid-in Capital |
Shares |
Amount |
Accumulated Deficit |
Stockholders’ Equity (Deficit) |
|||||||||||||||||||||||||||||||
Balance as of January 7, 2021, as previously reported |
— | $ | — | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Subscription receivable |
— | — | ( |
) | — | — | — | — | ||||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Balance as of January 31, 2021, as previously reported |
— | — | ( |
) | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Retroactive application of recapitalization |
— | — | — | ( |
) | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of January 31, 2021, after effect of reverse acquisition |
— | — | ( |
) | ( |
) | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Cash received for common stock subscribed |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Business Combination, net of redemptions and equity issuance costs of $ |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Delivery of common stock underlying restricted stock units |
— | — | — | ( |
) | — | — | — | — | |||||||||||||||||||||||||||||||
Shares settled for tax withholding on vesting of restricted stock units |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||||||
Share-based compensation |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Balance as of December 31, 2021 |
— | $ | — | $ | $ | — | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||||||||
Eleven Months Ended December 31, 2021 |
For the period January 7, 2021 (inception) through January 31, 2021 |
|||||||
Cash flows from operating activities |
||||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation |
||||||||
Change in fair value of warrant liability |
( |
) | — | |||||
Share-based compensation |
— | |||||||
Changes in assets and liabilities: |
||||||||
Prepaid expenses |
( |
) | — | |||||
Security deposits |
( |
) | — | |||||
Accounts payable |
||||||||
Accrued expenses |
||||||||
Net cash used in operating activities |
( |
) | — | |||||
Cash flows from investing activities |
||||||||
Deposits on equipment |
( |
) | — | |||||
Purchases of property and equipment |
( |
) | — | |||||
Payments for deferred investment costs |
( |
) | — | |||||
Net cash used in investing activities |
( |
) | — | |||||
Cash flows from financing activities |
||||||||
Proceeds from borrowings on related party loan |
— | |||||||
Repayments under related party loan |
( |
) | — | |||||
Proceeds from the issuance of common stock |
— | |||||||
Business Combination, net of issuance costs paid |
— | |||||||
Repurchase of common shares to pay employee withholding taxes |
( |
) | — | |||||
Net cash provided by financing activities |
— | |||||||
Net increase in cash and cash equivalents |
— | |||||||
Cash and cash equivalents, beginning of the period |
— | |||||||
Cash and cash equivalents, end of the period |
$ | $ | — | |||||
Supplemental disclosure of cash flow information |
||||||||
Cash paid for interest |
$ | $ | — | |||||
Cash paid for income taxes, net |
$ | $ | — | |||||
Supplemental disclosure of noncash investing and financing activities |
||||||||
Property and equipment purchases in accounts payable |
$ | $ | ||||||
Net assets assumed from GWAC in the Business Combination |
$ | $ | — | |||||
Non-cash fair value of private warrants |
$ | $ | — | |||||
Deferred offering costs included in accrued expenses |
$ | — | $ |
• | Cipher Mining Technologies’ existing shareholder has the greatest voting interest in the Company; |
• | the majority of the members of the board of directors of the Company are primarily composed of individuals associated with Cipher Mining Technologies; |
• | Cipher Mining Technologies’ senior management is the senior management of the Company; and |
• | Cipher Mining Technologies’ operations prior to the Reverse Recapitalization comprise the only ongoing operations of the Company after the consummation of the Business Combination. |
Level 1 – | Observable inputs, such as quoted prices in active markets for identical assets and liabilities. | |
Level 2 – | Inputs other than Level 1 inputs that are either directly or indirectly observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the instrument’s anticipated life. | |
Level 3 – | Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
December 31, 2021 |
January 31, 2021 |
|||||||
Computer equipment |
$ | $ | ||||||
Construction-in-progress |
— | |||||||
Property and equipment, gross |
||||||||
Less: accumulated depreciation |
( |
) | ( |
) | ||||
Property and equipment, net |
$ | $ | ||||||
• | Step 1: Identify the contract with the customer |
• | Step 2: Identify the performance obligations in the contract |
• | Step 3: Determine the transaction price |
• | Step 4: Allocate the transaction price to the performance obligations in the contract |
• | Step 5: Recognize revenue when the company satisfies a performance obligation |
• | Variable consideration |
• | Constraining estimates of variable consideration |
• | The existence of a significant financing component in the contract |
• | Noncash consideration |
• | Consideration payable to a customer |
• | the cancellation of each issued and outstanding share of Cipher Mining Technologies common stock; and |
• | the conversion into the right to receive a number of shares of the Company’s Common Stock based upon the Exchange Ratio. |
Recapitalization |
||||
Cash - GWAC trust and cash, net of redemptions |
$ | |||
Cash - PIPE Financing |
||||
Cash, subscription receivable and/or debt forgiveness - Bitfury Private Placement |
||||
Add: Non-cash net assets assumed from GWAC |
||||
Less: Fair value of private warrants |
( |
) | ||
Less: Transaction costs and advisory fees allocated to equity |
( |
) | ||
Net Business Combination |
||||
Less: Non-cash net assets assumed from GWAC |
( |
) | ||
Less: Transaction costs and advisory fees allocated to warrants |
( |
) | ||
Add: Fair value of private warrants |
||||
Net cash contributions from Business Combination |
$ | |||
Common stock of GWAC, net of redemptions |
||||
GWAC founder shares |
||||
GWAC private placement shares |
||||
Shares issued in PIPE Financing |
||||
Shares issued in the Bitfury Private Placement |
||||
|
|
|||
Business Combination, PIPE Financing and Bitfury Private Placement shares - Common Stock |
||||
Cipher common shares issued in Business Combination (1) |
||||
|
|
|||
Shares outstanding |
||||
|
|
(1) | The number of Cipher Mining Technologies common shares outstanding immediately prior to the Business Combination was |
Fair Value Measured as of December 31, 2021 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets included in: |
||||||||||||||||
Cash and cash equivalents |
||||||||||||||||
Money market securities |
$ | $ | — | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | — | $ | — | $ | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities included in: |
||||||||||||||||
Warrant liability |
$ | — | $ | — | $ | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | — | $ | — | $ | $ | |||||||||||
|
|
|
|
|
|
|
|
August 26, 2021 |
December 31, 2021 |
|||||||
Risk-free rate |
% | % | ||||||
Dividend yield rate |
% | % | ||||||
Volatility |
% | % | ||||||
Contractual term (in years) |
||||||||
Exercise price |
$ | $ |
Balance, February 1, 2021 |
$ | |||
Assumed in Business Combination |
||||
Change in fair value |
( |
) | ||
|
|
|||
Balance, December 31, 2021 |
$ | |||
|
|
December 31, 2021 |
January 31, 2021 |
|||||||
Accounting and audit |
$ | $ | ||||||
Legal costs |
||||||||
Employee related |
||||||||
Investor relations |
||||||||
|
|
|
|
|||||
Total accrued expenses |
$ | $ | ||||||
|
|
|
|
Vendor |
Agreement Date |
Maximum Purchase Commitment* |
Deposits Paid |
Expected Shipping | ||||||||
Bitmain Technologies Limited** |
$ | $ | ||||||||||
SuperAcme Technology (Hong Kong)** |
||||||||||||
Bitfury Top HoldCo B.V. |
*** | *** | ||||||||||
Bitfury USA Inc. |
Various |
|||||||||||
Total |
$ | $ | ||||||||||
* | Maximum purchase commitment does not consider discounts that the Company may qualify for with the respective vendors, which could reduce the total cost of the miners. |
** | Pursuant to the Company’s agreements with Bitmain and SuperAcme, the Company is responsible for all logistics costs related to transportation, packaging for transportation and insurance related to the delivery of the miners. |
*** | As of December 31, 2021, there were no mutually executed order confirmations and as such, the Company had no binding commitments to acquire miners from Bitfury Top HoldCo. |
December 31, 2021 |
||||
Luminant Purchase and Sale Agreement collateral (see Note 9) |
$ | |||
Luminant Power Purchase Agreement Independent Collateral Amount (see Note 9) |
||||
Office lease security deposit |
||||
Other deposits |
||||
Total security deposits |
$ | |||
• | in whole and not in part; |
• | at a price of $ |
• | upon a minimum of |
• | if, and only if, the closing price of the Company’s Common Stock equals or exceeds $ |
Service-Based RSUs |
$ | |||
Performance-Based RSUs |
||||
Total share-based compensation expense |
$ | |||
Number of Shares |
Weighted Average Grant Date Fair Value |
|||||||
Unvested at February 1, 2021 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Unvested at December 31, 2021 |
$ | |||||||
Number of Shares |
Weighted Average Grant Date Fair Value |
|||||||
Unvested at February 1, 2021 |
$ | |||||||
Granted |
||||||||
Unvested at December 31, 2021 |
$ | |||||||
Eleven Months Ended December 31, 2021 |
For the period January 7, 2021 (inception) through January 31, 2021 |
|||||||
Income tax benefit at federal statutory rate |
% | % | ||||||
State taxes, net of federal benefit |
% | % | ||||||
162m limitations |
( |
)% | % | |||||
Stock compensation |
( |
)% | % | |||||
Change in valuation allowance |
( |
)% | ( |
)% | ||||
Income tax provision (benefit) |
% | % | ||||||
December 31, 2021 |
January 31, 2021 |
|||||||
Deferred tax assets: |
||||||||
Net operating loss carryforwards |
$ | $ | ||||||
Share-based compensation |
— | |||||||
Accruals and other temporary differences |
||||||||
Gross deferred tax assets |
||||||||
Property and equipment, net |
( |
) | ( |
) | ||||
Valuation allowance |
( |
) | ( |
) | ||||
Net deferred tax assets |
$ | — | $ | — | ||||
December 31, 2021 |
||||
Public Warrants |
||||
Private Placement Warrants |
||||
Unvested RSUs |
||||
Item 13. |
Other Expenses of Issuance and Distribution. |
SEC registration fee |
$ | 17,248.03 | ||
Legal fees and expenses |
* | |||
Accounting fees and expenses |
* | |||
Financial printing and miscellaneous expenses |
* | |||
Total |
* |
* | Except for the SEC registration fee, estimated expenses are not presently known. The foregoing sets forth the general categories of expenses (other than underwriting discounts and commissions) that we anticipate we will incur in connection with the offering of securities under this Registration Statement on Form S-1. To the extent required, any applicable prospectus supplement will set forth the estimated aggregate amount of expenses payable in respect of any offering of securities under the registration statement. |
Item 14. |
Indemnification of Directors and Officers. |
Item 15. |
Recent Sales of Unregistered Securities. |
• | In July 2020, the Registrant issued 4,312,500 shares of common stock (the “Founder Shares”) to I-B Good Works LLC (“Sponsor”) and the Registrant’s officers and directors for an aggregate purchase price of $25,000. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. In August 2020, certain of the Registrant’s initial stockholders forfeited 1,355,000 Founder Shares and the Anchor Investors purchased 1,355,000 Founder Shares for an aggregate purchase price of approximately $7,855, or approximately $0.006 per share. In October 2020, Sponsor forfeited an aggregate of 562,500 founder shares for no consideration, and GW Sponsor 2, LLC, purchased from the Registrant 562,500 shares for a purchase price of $163,125. In connection with the cancellation of the remainder of the over-allotment option from the Registrant’s initial public offering, the Registrant cancelled an aggregate of 62,500 shares of common stock issued to Sponsor. |
• | On October 22, 2020, the Registrant consummated the private placement of 228,000 units at a price of $10.00 per unit, generating total proceeds of $2,280,000. Each unit consisted of one share of GWAC common stock and one-half of one warrant to purchase one share of GWAC common stock. Transaction costs amounted to $870,120 consisting of $450,000 in underwriting discounts and commissions and $420,120 for other costs and expenses. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. |
• | On August 27, 2021, the Registrant issued an aggregate of 32,235,000 shares of common stock to certain investors concurrently with the closing of the Registrant’s Business Combination at $10.00 per share for an aggregate purchase price of $322,350,000. The shares of common stock were not registered under the Securities Act, in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. Each of the investors represented that it was a “qualified institutional buyer” as defined Rule 144A under the Securities Act or an institutional “accredited investor” within the mean of Rule 501(a) under the Securities Act and that it was not acquiring such shares with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act, and appropriate legends were affixed to the certificates representing such shares (or reflected in restricted book entry with the Registrant’s transfer agent). |
• | On August 27, 2021, the Registrant issued an aggregate of 6,000,000 shares of common stock to Bitfury Holding B.V., a subsidiary of Bitfury Top HoldCo B.V., concurrently with the closing of the Registrant’s Business Combination at $10.00 per share for an aggregate purchase price of $60,000,000. The shares of common stock were not registered under the Securities Act, in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. The investor represented that it was a “qualified institutional buyer” as defined Rule 144A under the Securities Act or an institutional “accredited investor” within the mean of Rule 501(a) under the Securities Act and that it was not acquiring such shares with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act, and appropriate legends were affixed to the certificates representing such shares (or reflected in restricted book entry with the Registrant’s transfer agent). |
Item 16. |
Exhibits and Financial Statement Schedules. |
Incorporated by Reference |
||||||||||||||
Exhibit Number |
Description |
Form |
Exhibit |
Filing Date |
||||||||||
10.29 | Second Amendment to the Power Purchase Agreement, dated February 28, 2022, by and between Luminant ET Services Company LLC and Cipher Mining Technologies Inc. | 10-K | 10.35 | 3/4/2022 | ||||||||||
10.30 | Pre-Order Purchase Order No. CFR-001, dated October 11, 2021 | 8-K | 10.1 | 10/13/2021 | ||||||||||
10.31 | |
8-K |
|
|
99.1 |
|
4/12/2022 | |||||||
10.32 | 8-K | 99.2 | 4/12/2022 | |||||||||||
21.1 | List of Subsidiaries of Cipher Mining Inc. | 10-K | 21.1 | 3/4/2022 | ||||||||||
23.1 | Consent of Marcum LLP, Independent Registered Public Accounting Firm for Cipher Mining Inc. | |||||||||||||
23.2 | Consent of Latham & Watkins LLP (included as part of Exhibit 5.1) | S-1 |
23.3 | 1/21/2022 | ||||||||||
24.1 | Power of Attorney (included on signature page of this registration statement) | S-1 |
24.1 | 1/21/2022 | ||||||||||
101.INS | Inline XBRL Instance Document | |||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
* | Schedules and exhibits to this Exhibit omitted pursuant to Regulation S-K Item 601(b)(2). Cipher agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request. |
+ | Indicates a management contract or compensatory plan. |
++ | Certain confidential portions (indicated by brackets and asterisks) have been omitted from this exhibit because such information is both (i) non-material and (ii) would be competitively harmful if publicly disclosed. |
Item 17. |
Undertakings. |
(1) | to file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
(i) | to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended (the “Securities Act”); |
(ii) | to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
(iii) | to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement; |
(2) | that, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof; |
(3) | to remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering; |
(4) | that, for the purpose of determining liability under the Securities Act to any purchaser: each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use; and |
(5) | that, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: |
(a) | any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
(b) | any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
(c) | the portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of an undersigned registrant; and |
(d) | any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
CIPHER MINING INC. | ||
By: | /s/ Tyler Page | |
Name: Tyler Page | ||
Title: Chief Executive Officer |
Signature |
Title |
Date | ||
/s/ Tyler Page Tyler Page |
Director, Chief Executive Officer (Principal Executive Officer) |
April 21, 2022 | ||
/s/ Edward Farrell Edward Farrell |
Chief Financial Officer (Principal Accounting and Financial Officer) |
April 21, 2022 | ||
* Caitlin Long |
Director |
April 21, 2022 | ||
* Holly Morrow Evans |
Director |
April 21, 2022 | ||
* Robert Dykes |
Director |
April 21, 2022 | ||
* James Newsome |
Director |
April 21, 2022 | ||
* Cary Grossman |
Director |
April 21, 2022 | ||
* Wesley Williams |
Director |
April 21, 2022 |
* | Pursuant to power of attorney |
By: | /s/ Edward Farrell | |
Edward Farrell | ||
As Attorney-in-Fact |