Cipher Digital reported third-quarter 2026 revenue of $26,701,000, a 62.8% decline from a year earlier. Revenue fell short of the $38,473,000 analyst estimate. Cipher recorded a diluted loss of 22 cents per share, matching analyst expectations.
Bitcoin mining produced $20,849,000 in revenue, compared with $71,707,000 a year earlier. High-performance computing (HPC) leasing contributed $5,852,000, marking Cipher's first HPC lease revenue after Black Pearl rental payments started. Cipher expects more data halls at Black Pearl and Barber Lake to begin operating through year-end. Cipher reached an agreement with a leading AI lab to extend the Barber Lake lease to 20 years. The amendment added about $5.2 billion in rental commitments, bringing total contracted revenue to approximately $9.1 billion.
Cipher's operating loss increased to $71,915,000 from $37,617,000 a year earlier. Adjusted EBITDA moved from a $40,790,000 profit to a $9,963,000 loss. However, Cipher recorded net income of $31,596,000, compared with a $3,283,000 loss a year earlier. The results included a noncash gain of $127,180,000 from warrant-liability fair-value changes. Interest expense increased to $58,994,000 from $1,286,000.
Cipher held $656,009,000 in cash and cash equivalents on September 30, compared with $628,263,000 at the end of 2025. Long-term borrowings increased to $5.447 billion from $2.712 billion over that period. Cipher completed an $850 million offering of zero-coupon convertible senior notes maturing in 2032 to fund further Barber Lake investment. Cipher also converted approximately $165.9 million of 1.75% convertible notes maturing in 2030 into equity, retiring more than 90% of those notes.
Cipher obtained a conditional base load classification covering 1 gigawatt at Colchis through Texas grid operator ERCOT's Batch Zero process. Cipher also obtained conditional studied load classifications covering another 1.6 gigawatts. Cipher started developing natural gas pipelines to support potential on-site generation of up to 2.5 gigawatts. Cipher acquired Horizon, a Texas site with 70 megawatts of capacity that is expected to receive power in 2029. Cipher's development pipeline now amounts to approximately 5.9 gigawatts, including 270 megawatts available in 2027.
CEO Tyler Page said rising computing demand and closer relationships with hyperscalers and AI companies support Cipher's expansion. Page said Cipher is investing in development projects earlier and progressing design work before signing additional leases to prepare for future growth.
Benzinga Pro data showed Cipher shares down 0.82% at $7.220 during Monday's premarket trading after the earnings release. Cipher shares had closed 10% lower on Friday.
Cipher Digital Q3 2026 Revenue Drops 62.8% to $26.7M, Shares Fall Pre-Market
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Summary
Cipher Digital (NASDAQ:CIFR) posted Q3 2026 revenue of $26.7 million, a 62.8% drop from last year and below the $38.47 million digital asset market estimate. Bitcoin mining revenue fell to $20.85 million. The company reported a 22-cent loss per share, in line with forecasts. Cipher extended its Barber Lake lease for 20 years, adding $5.2 billion in rental obligations. Operating loss hit $71.9 million, and adjusted EBITDA turned negative at $9.96 million. Shares dipped 0.82% to $7.22 in premarket trading. Altcoins to watch may see ripple effects from such miner earnings shifts.
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