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CIFRCipher Digital

Crypto · Financial Services · Nasdaq
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The 10-K against last year's

461 changes: 127 added, 225 removed, 109 reworded

10-K Feb 24, 2026 vs Feb 25, 2025
Risk FactorsRedline ↓
65.2%
of the text changed · 18,198 words now
30.5%
of the text changed · 10,669 words now
Legal ProceedingsRedline ↓
35.2%
of the text changed · 505 words now
Accounting PoliciesRedline ↓
13.4%
of the text changed · 6,608 words now

10-K 0001819989-26-000009 (2026-02-24) vs 10-K 0001819989-25-000005 (2025-02-25)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

MD&A 227 words changed in this paragraph; it is 49% similar to last year's version.
On a As laws and regulations continue to evolve, we may become subject to additional requirements that could affect our mining, data center, and hosting activities. The primary legislative efforts that affect us have been those on the state level, particularly in Texas where our operations are most concentrated. Recently, there have been several recent legislative and regulatory efforts to manage power consumption and support grid reliability, which affects affect our business, business as an operator of industrial-scale data centers. In 2025, the Texas legislature introduced enacted legislation SB 6 to support ERCOT’s grid reliability by proposing minimum transmission rates on certain large loads and removing phantom loads from its interconnection queue to enhance accuracy of actual future load growth. Such regulation SB 6 requires the PUCT and ERCOT to create new processes and impose new requirements for the interconnection of facilities with large electrical loads of at least 75 MWs to the ERCOT system. SB 6 also requires security type payments as part of the initial interconnection request, and creates a new approval that is required for co-location of generation with large loads. In addition, ERCOT has amended and continues to evaluate its processes for interconnection of large electrical loads to the ERCOT grid. In December 2025, ERCOT announced amendments to the approval process for large load interconnection requests and is designing and implementing a process that may batch multiple large load interconnection requests together to evaluate system impacts on a portfolio basis for purposes of transmission planning. These developments, along with potential requirements relating to grid stability, voltage ride-through, frequency ride-through and curtailment obligations, could increase the costs of running our current data centers and sourcing new potential sites in Texas. costs, delay project timelines, or impose additional operational constraints. In 2025, 2024, the PUCT also required operators of large virtual currency mining operations connected to register their facilities with the PUCT. For additional discussion regarding our belief about the potential risks existing and future regulation pose to our business, see “Risk Factors—Risks Related to Regulatory Framework.”

Source: Item 7, 10-K 0001819989-26-000009 vs Item 7, 10-K 0001819989-25-000005

Risk Factors 148 words changed in this paragraph; it is 48% similar to last year's version.
Constructing data center facilities for HPC hosting requires significant capital expenditures, in particular when compared and we anticipate that future strategic growth initiatives will likewise continue to be capital-intensive. We expect to fund these through our capital expenditures for bitcoin mining data center facilities. raising efforts and raise additional capital to fund other future strategic growth initiatives; however, we may not be able to secure sufficient capital or financing on favorable terms, or meet the obligations of the financing we have secured. If we are not able to secure capital or financing unable to fund our construction efforts with respect to HPC hosting facilities, the completion of such projects may be delayed and delayed, our ability to collect any potential renal revenue or to otherwise monetize such facilities may be compromised, compromised and we may be less competitive in our industry, which could have an a material adverse effect impact on our business, results of operations and financial condition, including our expansion strategy and strategy, our ability to generate significant or any revenue from an HPC hosting business. business and on the market price for our securities. See also “— Risks Related to Our Indebtedness — We may need to raise additional capital, which may not be available on terms acceptable to us, or at all.”

Source: Item 1A, 10-K 0001819989-26-000009 vs Item 1A, 10-K 0001819989-25-000005

Legal Proceedings 114 words changed in this paragraph; it is 79% similar to last year's version.
The Company, and its subsidiaries, are subject at times to various claims, lawsuits and governmental proceedings relating to the Company’s business and transactions arising in the ordinary course of business. The Company cannot predict the final outcome of such proceedings. Where appropriate, the Company vigorously defends such claims, lawsuits and proceedings. Some of these claims, lawsuits and proceedings seek damages, including consequential, exemplary or punitive damages, in amounts that could, if awarded, be significant. Certain of the claims, lawsuits and proceedings arising in the ordinary course of business are covered by the Company’s insurance program. The Company maintains property and various types of liability insurance in an effort to protect the Company from such claims. In terms of any matters where there is no insurance coverage available to the Company, or where coverage is available and the Company maintains a retention or deductible associated with such insurance, the Company may establish an accrual for such loss, retention or deductible based on current available information. In accordance with accounting guidance, if it is probable that an asset has been impaired or a liability has been incurred as of the date of the financial statements, and the amount of loss is reasonably estimable, then an accrual for the cost to resolve or settle these claims is recorded by the Company in the accompanying consolidated balance sheets. If it is reasonably possible that an asset may be impaired as of the date of the financial statements, then the Company discloses the range of possible loss. Expenses related to the defense of such claims are recorded by the Company as incurred and included in the accompanying consolidated statements of operations. Management, with the assistance of outside counsel, may from time to time adjust such accruals according to new developments in the matter, court rulings, or changes in the strategy affecting the Company’s defense of such matters. On the basis of current information, the Company does not believe there is a reasonable possibility that a material loss, if any,

Source: Item 3, via Note 14 – COMMITMENTS AND CONTINGENCIES, 10-K 0001819989-26-000009 vs Item 3, via Note 14 – COMMITMENTS AND CONTINGENCIES, 10-K 0001819989-25-000005

Accounting Policies 87 words changed in this paragraph; it is 79% similar to last year's version.
incurred if a reasonable estimate of fair value can be made. Due to the long lead time involved until decommissioning activities occur, the Company uses a present value technique to estimate the liability. A liability for the fair value of the ARO based on the expected present value of estimated future decommissioning costs with a corresponding increase to the carrying value of the related long-lived asset (leasehold improvements) was recorded upon commencement of activities at the lease in November 2022. Additionally, an ARO for our Odessa and Black Pearl Facility will be analyzed and recorded upon completion of construction. Facilities, respectively. The estimated capitalized asset retirement costs are depreciated using the straight-line method over the estimated remaining useful life of the related long-lived asset, with such depreciation included in depreciation expense in the consolidated statements of operations. The ARO is accreted based on the original discount rate and is recognized as an increase in the carrying amount of the liability and a charge to accretion expense, which is included in depreciation expense in the consolidated statements of operations. Annually, or more frequently if an event occurs that would dictate a change in assumptions or estimates underlying the obligation, the Company reassesses its ARO to determine whether any revisions to the obligation are necessary. Revisions to the estimated ARO for items such as (i) new liabilities incurred, (ii) liabilities settled during the period and (iii) revisions to estimated future cash flow requirements (if any), will result in adjustments to the related capitalized asset and corresponding liability.

Source: 10-K text, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001819989-26-000009 vs 10-K text, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001819989-25-000005

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of CIFR's Risk Factors and MD&A, 10-K 2026-02-24 against 10-K 2025-02-25. Each links to the text at sec.gov.

Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier (may, could, will, not, significant, material…). A year or date rolling forward is not counted.

The full word listadverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
If we are unable to complete the construction of our HPC data centers in a timely manner or within our anticipated cost estimates, it could have a material adverse effect on our business, results of operations, liquidity and our ability to make payments on our outstanding indebtedness.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedRisk Factors
Our business depends upon the construction of data centers for our HPC tenants. Until we complete construction of those data centers, we will not realize the full amount of projected revenue from such leases. We cannot guarantee we will complete construction of all or any portion of the Barber Lake Facility, the Black Pearl Facility, or any future strategic growth initiatives on time or within our cost estimates, if at all, due in part to the ongoing challenges to the global supply chain, the implementation of new tariffs and more restrictive trade policies, increased inflation and changing conditions within the United States labor market.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedRisk Factors
Under certain circumstances, our lessees will have the right to terminate the lease if there are significant delays in the completion of construction, subject to extension for force majeure events and certain tenant delays. If we experience delays in the construction process or are unable to complete construction within our anticipated costs estimates, we may not generate sufficient revenues to fund our liquidity needs, including payment of principal and interest on the notes.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedRisk Factors
Construction of our HPC data centers exposes us to significant construction risks, including risks related to: construction delays; lack of availability of parts and/or labor, increased prices as a result, in part, of inflation, and delays for data center equipment; labor disputes and work stoppages, including interruptions in work due to pandemics, epidemics, and other health risks; unanticipated environmental issues and geological problems; delays related to permitting and approvals to commence operations from public agencies and utility companies; and delays in site readiness leading to our failure to meet commitments made in connection with such expansion. Should any of the foregoing risks materialize or should any of our assumptions concerning the timing of construction or the availability of supplies and labor, our estimates of the total construction cost for our HPC data centers may be inaccurate and total construction costs may exceed our budget. Further, although we will provide completion guarantees of the construction, there can be no assurance that we will have sufficient funds to meet our obligations under such guarantees if we are unable to complete construction of the HPC data centers within our current anticipated cost estimates. All construction-related projects depend on the skills, experience, and attentiveness of our personnel throughout the design and construction process. Should a designer, general contractor, significant subcontractor or key supplier experience financial difficulties or other problems during the design or

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedRisk Factors
construction process, we could experience significant delays, increased costs to complete the project and/or other negative impacts to our expected returns.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedRisk Factors
If we are unable to overcome these risks and additional pressures to complete our HPC construction projects in a timely manner, if at all, we may not realize their anticipated benefits, and our business and financial condition may be materially impacted.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedRisk Factors
Our tenants’ guarantees and other backstop arrangements under our HPC leases will only be effective after rent commencement under such leases and are subject to certain limitations, like event of default triggers or caps.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedRisk Factors
Our tenants’ guarantees of their obligations under the HPC leases are only effective following the rent commencement date of such lease and are subject to certain limitations, like event of default triggers or caps on liability. If the leases do not commence as of their targeted rent commencement date, then the guarantee under such lease will not become effective until the completion of the HPC data center. If completion of the data centers are delayed, our tenants may have the right to terminate their lease. Such termination events would not trigger the tenants’ guarantee either. While we believe they are unlikely to occur, there are other events of default or termination events that may result in the termination of the HPC leases without triggering a tenant guarantee. In addition, if we have a disagreement with our tenants about whether their guarantee has been triggered, there can be no assurance that they will honor their guarantee in a timely manner or at all. If a guarantee has been triggered, they are subject to certain caps on such guarantor’s liability, which may limit the amount of tenant’s obligations that are guaranteed.

Read it in 10-K 2026-02-24 at sec.gov ↗

Show the other 64
AddedRisk Factors
We believe the potential for HPC hosting complements our current business model with expected stable, long-term and high margin revenue. However, the success of our HPC hosting services may not develop as anticipated, and may be affected by factors such as the reliability and timing of power supply, supply chain disruption (including local labor availability), the implementation of new tariffs and more restrictive trade regulations and changes in in-house specialized expertise to manage the business. A failure to successfully implement our HPC business strategy may adversely affect our business, prospects, or operations.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedRisk Factors
We are in the business of owning, acquiring, developing and operating data centers. A reduction in the demand for data center space, power or connectivity could have an adverse effect on our business and financial condition. Our substantial development activities make us susceptible to adverse developments in the data center, Internet and data communications and broader technology industries. Any such slowdown or adverse development could lead to reduced demand for data center space. Reduced demand could also result from business relocations, including to metropolitan areas that we do not currently serve. Changes in industry practice or in technology could also reduce demand for the physical data center space we provide. In addition, our customers may choose to develop new data centers or expand their own existing data centers or consolidate into data centers that we do not own or operate, which could reduce demand for our newly developed data centers or result in the loss of one or more key tenants. Our financial condition, results of operations, cash flow, cash available to satisfy our debt service obligations could be materially adversely affected as a result of any or all of these factors.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedRisk Factors
There have been, and continue to be, uncertainties with respect to the global economy and trade relations between the U.S. and other countries globally, including trade policies, treaties, tariffs, and customs duties and taxes. Implementation of more restrictive trade policies or the renegotiation of existing U.S. trade agreements or trade agreements of other countries where we procure supplies and materials for our digital infrastructure could negatively impact our business results of operations, cash flows, and financial condition. Tariffs, sanctions and other barriers to trade could adversely affect the business of our business partners, such as suppliers, which could in turn negatively impact our net revenue and results of operations. If tariffs, trade restrictions or trade barriers are expanded or increased, then our exposure to future taxes and duties on imported products and components could be significant and could have a material effect on our financial results.

Read it in 10-K 2026-02-24 at sec.gov ↗

RemovedRisk Factors
Generally, a bitcoin miner’s chance of solving a block on the bitcoin blockchain and earning a bitcoin reward is a function of the miner’s hashrate (i.e., the amount of computing power devoted to supporting the Bitcoin blockchain), relative to the global network hashrate. As demand for bitcoin has increased, the global network hashrate has increased, and to the extent more adoption of bitcoin occurs, we would expect the demand for bitcoin would increase, drawing more mining companies into the industry and further increasing the global network hashrate. As new and more powerful miners are deployed, the global network hashrate will continue to increase, meaning a miner’s percentage of the total daily rewards will decline unless it deploys additional hashrate at pace with the growth of global hashrate. Accordingly, to compete in this highly competitive industry, we believe we will need to continue to acquire new miners, both to replace those lost to ordinary wear-and-tear and other damage, and to increase our hashrate to keep up with a growing global network hashrate.

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedRisk Factors
Furthermore, predicting the growth in network hashrate is extremely difficult. To the extent that hashrate increases but the price of bitcoin does not, the results of our bitcoin mining operations would suffer.

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedRisk Factors
•governmental and quasi-governmental regulation of bitcoin and its use, or restrictions on or regulation of access to and operation of the Bitcoin network or similar cryptocurrency systems;

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedRisk Factors
•the availability and popularity of other cryptocurrencies and other forms or methods of buying and selling goods and services, including new means of using fiat currencies;

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedRisk Factors
•unpredictability or turbulence in the digital assets industry due to major events, such as failure of key institutions in the digital asset industry;

Read it in 10-K 2025-02-25 at sec.gov ↗

RewordedRisk Factors
If we are not able to secure capital or financing unable to fund our construction efforts with respect to HPC hosting facilities, the completion of such projects may be delayed and delayed, our ability to collect any potential renal revenue or to otherwise monetize such facilities may be compromised, compromised and we may be less competitive in our industry, which could have an a material adverse effect impact on our business, results of operations and financial condition, including our expansion strategy and strategy, our ability to generate significant or any revenue from an HPC hosting business. business and on the market price for our securities.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
We and our business and commercial partners, such as mining pools and other third parties with which we interact, partners rely extensively on third-party service providers’ information technology (“IT”) systems, including cloud-based systems, on-premises servers and data centers, renewable energy infrastructure, cloud-based infrastructure and other networked systems and on-premises servers (i.e., data centers), (collectively, “IT Systems”), to record and process transactions and manage our operations, among other matters. operations.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
There Although we have not experienced a material cybersecurity incident to date, there can also be no assurance that we will not experience such an incident in the future or that our cybersecurity risk management program and processes, including our program, policies, controls or procedures, and procedures will be fully implemented, complied with or effective in protecting our IT Systems and Confidential Information. effective.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
In the future, we We expect competition to further intensify with existing and new competitors, within and outside the United States, we may not be able to compete successfully against present or future competitors, which may have various advantages over us, such as: as more timely adoption of new technologies, greater access to capital, greater financial resources for data center constructions,

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
Our business operations and reputation depend on our ability, and the ability of our third-party service providers, including mining pool service providers, custodians and other counterparties, to maintain the confidentiality, integrity and availability of data, our information technology systems, digital assets and systems related to our business, customers, confidential information, including proprietary technologies, processes processes, intellectual property and intellectual property. personal information (“Confidential Information”).

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
In addition, pursuant to an at-the-market offering agreement with Cantor Fitzgerald & Co., Canaccord Genuity LLC, Needham & Company, LLC, Compass Point Research & Trading, LLC, Keefe, Bruyette & Woods, Inc., Virtu Americas LLC and BTIG, LLC, we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $725.7 million, which consists of (i) up to $125.7 million remaining as authorized under the Company’s Registration Statement on Form S-3, which was declared effective by the Securities and Exchange Commission (“SEC”) on October 6, 2022, and (ii) up to $600.0 million of Shares, which can be issued and sold pursuant to the Company’s shelf registration statement on Form S-3ASR, filed with the SEC on September 3, 2024, which became immediately effective upon filing.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
If We operate in a highly competitive, rapidly evolving industry and if we are unable to secure power supply at prices or on terms acceptable respond to us, our competitors effectively, it would could have a material adverse effect on our business, prospects, results of operations, and financial condition, and operating results. condition.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
We may issue additional The issuance of shares of our common stock or other equity securities without your approval, which would upon conversion of the Convertible Notes will dilute your the ownership interests of our stockholders and may could depress the market trading price of our common stock.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
Our Certificate of Incorporation contains provisions that may delay or prevent an acquisition of Cipher or a change in its management in addition to the significant rights of Bitfury Group as direct and indirect holder of approximately 27% of our common stock, as of February 24, 2025. management.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
We also may be subject to significant damages or injunctions that may cause a material adverse effect to our business and operations, if we cannot license or develop an alternative for any infringing aspect of its business, and may result in a material loss in revenue, which could adversely affect the trading price of our shares and harm our investors.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
As we continue to develop and expand our operations, we may require personnel with different skills and experiences, who have a sound understanding of our business business, data center construction, and the cryptocurrency HPC industry, for example, specialists in power contract negotiations and management, as well as data center specialists. specialists, and we may also compete for talent in other related fields, such as finance and real estate.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedRisk Factors
(“AEP”) , We depend on third parties, including transmission and distribution utilities like Oncor Electric Delivery Company LLC (“Oncor”) and AEP, the Texas electric utility grid operator, ERCOT, and manufacturers of critical components for our mining equipment and our data centers, which may be subject to price fluctuations or shortages.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedMD&A
For discussion around our results of operations for the year ended December 31, 2024 and a comparison of our results of operations for the year ended December 31, 2024 and year ended December 31, 2023, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual report on Form 10-K for fiscal year ended December 31, 2024 filed with the SEC on February 25, 2025.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedMD&A
We are dedicated to developing and operating industrial-scale data centers engineered for next-generation computing at the highest standards of innovation, precision, and excellence. Over the past several years, we have intentionally evolved from a pure-play bitcoin miner into a vertically integrated data center development and operations platform focused on energy-intensive compute infrastructure. Our vertical integration spans critical stages of the data center value chain, including land and power origination and interconnection, site development, data center design and construction, oversight and ongoing facility operations.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedMD&A
Fundamentally, we bring together construction, engineering, operations, power, real estate and technology expertise to deliver high quality, purpose-built data centers that meet tenants’ needs. Our in-house teams source and control industrial-scale sites with access to substantial electric power capacity, advance grid interconnection and substation development, and manage the design and construction of data center campuses. We also operate and maintain energy-intensive data center facilities, leveraging operational expertise developed through our employees’ extensive experience managing Tier III HPC data centers and large, flexible electrical loads. Against a backdrop of increasing demand for AI technology and access to energized HPC data centers to meet consumers’ demands for such technology, we believe we play an important part of the AI economy and we expect to benefit from powerful, long-term growth drivers.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedMD&A
While bitcoin mining has been an important component of our business model in prior years, our strategy increasingly emphasizes the development of industrial-scale data centers that can be leased to hyperscalers and other HPC customers under long-term contracts, while retaining the flexibility to deploy bitcoin mining as an interim or complementary use of power.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedMD&A
On February 20, 2026, we changed our name to “Cipher Digital Inc.” Rebranding to “Cipher Digital” aligns with our corporate strategy to scale into a leading HPC data center developer and operator, as we leverage our existing site pipeline and source additional sites, partnering with premier tenants, and developing and operating industry-leading data centers purpose-built for HPC. Our goal is to monetize our power assets and manage capital efficiently through market cycles in order to align our infrastructure with the growing global demand for AI-driven compute capacity.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedMD&A
We believe we have secured key HPC leases for our data centers and expect to continue to do so for the additional sites in our portfolio due to several key strengths and strategies. We believe we have a demonstrated ability to source high-quality sites suitable for HPC tenants, with characteristics like proximity to major metropolitan areas, ample acreage, diverse fiber routes, and available interconnection infrastructure. We have experienced in-house construction, engineering

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedMD&A
A significant component of our current and future growth is expected to be generated through the development of our existing portfolio and acquisition of new sites. We are focused on developing the remaining sites in our pipeline for future HPC tenants, and evaluating additional sites, locations, and partnerships to expand our pipeline that are suitable for HPC tenants. From time to time, we may also look to sell individual assets that we do not consider to be core to our business and growth strategy. For further details on our pipeline of future sites that we expect to be suitable for HPC, see “Business—Site Pipeline.”

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedMD&A
On February 20, 2026, our board of directors approved an amendment to our Second Amended and Restated Certificate of Incorporation to change the name of the company to “Cipher Digital Inc.” The amendment became effective upon filing with the Delaware Secretary of State on February 20, 2026.

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedMD&A
On February 20, 2026, the Board of Directors approved and adopted amendments to the Company’s Amended and Restated Bylaws (the “Bylaws”), effective immediately. The Bylaws were amended and restated to change the name of the company to “Cipher Digital Inc.”

Read it in 10-K 2026-02-24 at sec.gov ↗

AddedMD&A
Our growth strategies include pursuing expansion and diversification of our revenue streams into new markets. Pursuant to that strategy, in 2025, we increased our focus on diversification into HPC data centers and signed two HPC tenants for a total of 600 MW of data center capacity. We believe we may be able to leverage some of our existing infrastructure and expertise to develop those data centers and future ones. As we enter into new markets for HPC data centers, we will face new sources of competition, new business models and new tenant relationships. Our strategy may not be successful as a result of a number of factors described under “Item 1A. Risk Factors—Risks Related to HPC—Our increased focus on developing data centers for HPC hosting may not become profitable in the future and may result in adverse consequences to our business, results of operations and financial condition” in this Annual Report. Our efforts to diversify our revenue streams may distract management, require significant additional capital, expose us to new competition and market dynamics, and increase our cost of doing business.

Read it in 10-K 2026-02-24 at sec.gov ↗

RemovedMD&A
We develop and operate industrial-scale data centers. Our active portfolio and development pipeline is expected to consist of more than 3.0 GW of capacity across 11 sites. We currently operate four bitcoin mining data centers and have a pipeline of seven additional sites in Texas, including one site expected to energize in May 2025. As we develop the sites in our pipeline and source future sites, we evaluate their suitability for either bitcoin mining or HPC. For further details on our data centers, see “Business—Data Center Portfolio.”

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
Our current intention is to continue expanding our business by developing and operating industrial-scale data centers for bitcoin mining and HPC, expanding capacity at our current data centers, developing our treasury management platform and entering into other strategic arrangements, such as joint ventures, data center hosting and leasing agreements, or software licensing arrangements. We aim to be a market leader in innovation, including in bitcoin mining growth, data center construction and as a hosting partner to HPC companies.

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
As of January 31, 2025, we operated an aggregate hashrate capacity of approximately 15.7 exahash per second (“EH/s”), deploying approximately 327 megawatts (“MW”) of electricity, of which we owned an aggregate hashrate capacity of approximately 13.5 EH/s, deploying approximately 266 MW of electricity. As further discussed in “—Our Strategy”, we plan to deploy an additional approximately 150 MW for a total of approximately 477 MW of electrical capacity by the end of 2025, and a corresponding hashrate of at least approximately 25.2 EH/s, of which we expect to own approximately 23.0 EH/s, with the remainder being owned by WindHQ, our JV partner. For further details on our joint ventures, see “Business—Business Agreements—Joint Ventures.”

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
On January 30, 2025, we entered into a subscription agreement with Star Beacon LLC, a wholly owned subsidiary of SoftBank Group Corp. (“SoftBank”), pursuant to which, among other things, SoftBank agreed to subscribe for and purchase from us, and we agreed to issue and sell to SoftBank, an aggregate of approximately 10,438,413 newly issued shares of our common stock, par value $0.001, at a per share purchase price of $4.79 for an aggregate purchase price of approximately $50 million. As part of this transaction, we agreed prior to February 28, 2025, we would not enter into binding definitive documentation with respect to the sale, transfer, divestiture or encumbrance of the Barber Lake property with any person other than SoftBank and its affiliates.

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
On January 31, 2025, we executed our option as part of the Amendment Agreement, further described in Note 6. Deposits on equipment, with Bitmain to obtain Antminer S21 XP miners for delivery between May and June 2025. We intend to use these machines at the Black Pearl Facility. As of February 25, 2025, we owe $139 million remaining for these machine purchases.

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
Our revenues comprise a combination of: (i) block rewards in bitcoin, which are fixed rewards programmed into the bitcoin software that are awarded to a miner or a group of miners for solving the cryptographic problem required to create a new block on a given blockchain and (ii) transaction fees in bitcoin, which are flexible fees earned for verifying transactions in support of the blockchain. For further details, see “Business—Revenue Structure.”

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
Our revenues are directly impacted by changes in the market value of bitcoin. For example, the market price of one bitcoin in our principal market ranged from approximately $38,501 to $108,389 during the fiscal year ended December 31, 2024 and $16,490 to $45,000 during the fiscal year ended December 31, 2023. Furthermore, block rewards are fixed and the Bitcoin network is designed to periodically reduce them through halving. Currently the block rewards are fixed at 3.125 bitcoin per block after the latest halving in April 2024. The halving events happen without any regard to ongoing demand, meaning that if the ongoing demand remains the same after a halving event, whatever demand was being met by new supply will be restricted, which may necessitate an adjustment of the price of bitcoin, though there is no definitive evidence of a causal link between bitcoin’s programmatic decrease in supply and broadening demand.

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
Bitcoin miners also collect transaction fees for each transaction they confirm. Miners validate unconfirmed transactions by adding the previously unconfirmed transactions to new blocks in the blockchain. Miners are not forced to confirm any specific transaction, but they are economically incentivized to confirm valid transactions as a means of collecting fees. Miners have historically accepted relatively low transaction confirmation fees, but transaction fees vary and it is difficult to predict what transaction fees will be in the future.

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
As the use of the Bitcoin network expands and the total number of bitcoin available to mine and, thus, the block rewards, declines over time, we expect the mining incentive structure to transition to a higher reliance on transaction confirmation fees, and the transaction fees to become a larger proportion of the revenues to miners.

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
We have expenses denominated primarily in United States dollars. As such, we are likely to need to sell a portion of the bitcoin we mine to generate dollars to meet expenses. This means the market value of bitcoin will always be a significant factor affecting our results of operations.

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
Because the number of bitcoin mined is directly related to the size and efficiency of a bitcoin mining company’s fleet of miners, we believe we need to deploy increasingly sophisticated miners in ever greater quantities to remain competitive as the overall hashrate and difficulty of the Bitcoin network increases.

Read it in 10-K 2025-02-25 at sec.gov ↗

RemovedMD&A
We believe that our commitment to cost and mining efficiency remains our competitive advantage. The majority of our capital expenditures have been directed towards the latest models of mining machines and technology featuring industry-leading capacity, speed and efficiency. We believe that we operate one of the most efficient mining rig fleets in the global market. We believe that to maintain our competitive advantage over the long term, we must develop and maintain strong relationships across the mining rig supply chain, and strategically invest in state-of-the art miners at attractive prices, while effectively managing our fleet as it ages along the obsolescence curve.

Read it in 10-K 2025-02-25 at sec.gov ↗

RewordedMD&A
Quantity Amounts Opening balance 780 994 $ 32,978 92,651 Bitcoin received from equity investees 442 18,089 255 25,813 Bitcoin received from mining activities 2,189 151,296 1,925 199,579 Bitcoin received from loan 99 9,976 180 16,551 Bitcoin paid for interest on loan payments (20) (1,977) (2) (140) Proceeds from sale sales of bitcoin (2,151) (148,870) (2,289) (214,737) Spot bitcoin purchases 25 2,430 Realized gains on sale of bitcoin — 51,548 7,126 Unrealized gains losses on fair value of bitcoin — (41,603) Realized loss on bitcoin — 11,313 Bitcoin transferred to collateral, net (345) (31,702) — (3,195) Bitcoin transferred from collateral, net 345 $ 40,925 Ending balance 994 1,433 $ 92,651 125,400

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
Net loss per share - diluted $ (2.15) $ (0.14) $ (0.10) Change in fair value of derivative asset power purchase agreement per diluted share 0.07 0.02 (0.11) Share-based compensation expense per diluted share 0.14 0.13 0.15 Depreciation and amortization per diluted share 0.52 0.32 0.23 Deferred income tax (benefit) expense per diluted share (0.01) — 0.01 Other gains losses (gains) - nonrecurring per diluted share 1.09 — (0.01) Change in fair value of warrant liability per diluted share (0.05) — — Loss on miners held for sale per diluted share 0.25 — — Impairment of long lived assets per diluted share 0.12 — — Disposal of miners per diluted share 0.08 — — Adjusted (loss) earnings per diluted share $ 0.06 $ 0.33 $ 0.17

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
The increase was primarily due to increased miners, and mining equipment at the Odessa Facility, Facility as well a result of the Odessa fleet upgrade in the fourth quarter of 2024, increased fixed assets placed into service as a result of the Black Pearl Facility commencing operations in July 2025, and the change in the estimated useful life of our miners from five years to three years. years as of June 1, 2024.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
Net loss $ (822,244) $ (44,635) $ (25,777) Change in fair value of derivative asset power purchase agreement 28,860 7,921 (26,836) Share-based compensation expense 52,787 42,132 38,470 Depreciation and amortization 198,973 102,448 59,093 Deferred income tax (benefit) expense (4,269) (937) 3,366 Other gains losses (gains) - nonrecurring 416,688 — (2,355) Change in fair value of warrant liability (19,290) (250) 243 Loss on miners held for sale 96,056 — — Impairment of long lived assets 45,317 — — Disposal of miners 29,358 — — Adjusted (loss) earnings $ 22,236 $ 106,679 $ 46,204

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
Cash flows used in investing activities increased by $245 $144.5 million to $336.6 million of net cash used in investing activities for the year ended December 31, 2025 compared to $192.1 million of net cash used in investing activities for the year ended December 31, 2024 compared to $52.8 million of net cash provided by investing activities for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
We As a data center operator in an energy-intensive industry like HPC, we take a proactive and adaptive approach to regulatory compliance by closely monitor monitoring legislative and regulatory developments and engage in dialogue engaging with relevant stakeholders to ensure align our business practices align with the an evolving legal and regulatory framework.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
Cash flows provided by financing activities increased by $97.8 $2,975.7 million to $3,189.2 million net cash provided by financing activities for the year ended December 31, 2025 from $213.5 million net cash provided by financing activities for the year ended December 31, 2024 from $115.7 million net cash used in financing activities for the year ended December 31, 2023. 2024.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
We are providing This press release includes supplemental financial measures for Adjusted Earnings (Loss) and Adjusted Earnings (Loss) per share - diluted, in each case that exclude the impact of (i) the non-cash change in fair value of derivative asset, (ii) share-based compensation expense, (iii) depreciation and amortization, (iv) deferred income tax expense, (v) nonrecurring gains and losses and losses, (vi) the non-cash change in fair value of warrant liability. liability, (vii) non-cash losses related to miners reclassified as held for sale, (viii) impairment of long-lived assets, and (ix) non-cash disposal of miners.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
We incurred a net loss of $822.2 million for the year ended December 31, 2025, compared to a net loss of $44.6 million for the year ended December 31, 2024, compared to a net loss of $25.8 million for the year ended December 31, 2023, representing an increase of $18.9 $777.6 million.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
The increase year over year was primarily driven by an overall increase in the average bitcoin price in the current year, partially offset by a decrease in the amount of bitcoin mined as a result of the bitcoin halving in April 2024 which reduced the bitcoin reward per block from 6.25 to 3.125. 2024.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
Unrealized losses on fair value of bitcoin totaled $41.6 million for the year ended December 31, 2025, compared to Unrealized gains on fair value of bitcoin totaled of $11.3 million and $3.3 million for the year ended December 31, 2024, and 2023, respectively. 2024.

Read it in 10-K 2026-02-24 at sec.gov ↗

RewordedMD&A
Management’s assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which we are reasonably certain of not exercising, as well as periods covered by renewal options which we are reasonably certain of exercising.

Read it in 10-K 2026-02-24 at sec.gov ↗

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