Cipher Digital $CIFR (-11,43%) reported significantly lower revenue and a larger loss in the second quarter of 2026 than analysts had expected. At the same time, Cipher announced the early completion of its first data center and unveiled a new 900MW facility in Texas.
The figures:
- Revenue: $24.8 million – about 24% below analysts’ estimates of ~$32.5 million
- Net loss: $267.5 million, or -$0.65 per share (previous quarter: -$0.28) – of which $150.5 million was a non-cash warrant revaluation
- Liquidity: $870 million in freely available funds; according to the company, no capital increase is currently necessary
- Black Pearl: The first data center was two months earlier than planned: Rental income has been coming in since August 1
- Stingray: A $810 million bond with a 6% coupon was placed—the project is thus financed until completion.
According to the company, the decline in revenue is primarily due to the planned reduction of Bitcoin mining capacity at Black Pearl. The large loss may seem dramatic at first glance, but it is largely an accounting consequence of the revaluation of warrants and only partially affects the operating business.
Operationally, Cipher delivers strong operational results: The early completion of Black Pearl and the third consecutive project financing round underscore that the restructuring is proceeding as announced.
It remains to be seen how the approval process with the Texas grid operator ERCOT : A letter from Texas Governor Greg Abbott is causing delays there that could also affect future Cipher sites.
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