Form 4: Bitfury Top HoldCo B.V. Sells Additional Shares of Cipher Mining Inc. (CIFR)

Bitfury Top HoldCo B.V. and related entities continue to reduce their stake in Cipher Mining Inc. through a series of open market sales.

Summary

• Bitfury Top HoldCo B.V. and related entities, including V3 Holding Ltd, Bitfury Holding B.V., Bitfury Group Ltd, and Valerijs Vavilovs, have reported the sale of Cipher Mining Inc. (CIFR) common stock.
• The sales occurred over three days: June 24, 2024, June 25, 2024, and June 26, 2024.
• A total of 443,830 shares were sold on June 24 at a weighted average price of $4.33.
• On June 25, 454,073 shares were sold at a weighted average price of $4.26.
• On June 26, 466,915 shares were sold at a weighted average price of $4.30.
• Following these transactions, the entities still indirectly hold a significant number of shares, with Bitfury Top HoldCo B.V. holding 56,353,668 shares directly and controlling other entities holding additional shares.
• The sales were made from a previously disclosed share reserve, and the reporting persons expect to sell approximately 1.9 million additional shares, subject to market conditions.

Sentiment

Score: 4

Explanation: The sentiment is neutral to slightly negative. While the sales are part of a pre-existing plan, continued selling pressure can negatively impact investor sentiment and stock price.

Negatives

• The continued selling by Bitfury Top HoldCo B.V. and related entities could put downward pressure on CIFR's stock price.

Risks

• Further sales from the share reserve could continue to negatively impact the stock price.
• Market conditions could affect the ability to sell the remaining shares at favorable prices.

Future Outlook

The reporting persons expect to sell approximately 1.9 million additional shares from the share reserve, subject to market conditions and other matters.

Industry Context

Sales by major shareholders are common and can be driven by various factors, including portfolio rebalancing or raising capital for other ventures. The impact on Cipher Mining's stock will depend on the overall market sentiment and investor confidence in the company's prospects.

Comparison to Industry Standards

• It's common for large shareholders, especially venture capital or private equity firms, to gradually reduce their holdings in a company after it goes public.
• Comparable companies in the mining sector often see similar patterns of insider selling as initial investors look to realize gains.
• The scale of these sales is relatively small compared to the overall market capitalization of Cipher Mining, but the continued selling pressure could still influence the stock price.

Stakeholder Impact

• Shareholders may experience downward pressure on the stock price due to the ongoing sales.
• The company may need to manage investor relations to address concerns about the selling activity.

Next Steps

• The reporting persons expect to sell approximately 1.9 million additional shares from the share reserve, subject to market conditions.

Key Dates