Akcie společnosti Cipher Digital Holdings během týdne klesly o 25,7 % po oznámení emise bezúročných konvertibilních dluhopisů v hodnotě 850 milionů USD a emise nových akcií.
An $850 million zero-interest convertible debt offering and a concurrent share issuance sent Cipher Digital (CIFR -3.79%) down 25.7% this week, according to data provided by S&P Global Market Intelligence.
Cipher Digital stock changed hands at $10.04 as of the close on Thursday, Oct. 15, down 25.7% from Friday, Oct. 9's close through Thursday, Oct. 15's close. Over the same period, the S&P 500 (^GSPC -0.09%) fell 0.3%, and the Nasdaq-100 was down 1.8%.
$9.66-$0.38 (-3.79%)
NASDAQ · As of 10:18 AM ET 10/16/26
Convertible debt and dilution worries spark a sell-offManagement announced a private offering of $850 million in 0.00% convertible senior notes due 2032, with an option for initial buyers to purchase up to an additional $150 million. Convertible senior notes are zero-interest debt obligations that investors can later exchange for equity, trading lower interest expenses for potential stock dilution. Concurrently, the company agreed to exchange $165.9 million of its 1.75% convertible notes due 2030 for approximately 40.7 million common shares, swapping debt obligations for immediate share dilution. The stock sits down 66.7% (as of the close on Thursday, Oct. 15) from its 52-week high of $30.14.
Cipher Digital operates industrial-scale data centers and leases high-performance computing infrastructure and Bitcoin mining sites to technology and digital asset clients. The company plans to use the net proceeds to fund capital expenditures for its Barber Lake data center expansion in Texas, where it absorbs the first $359.3 million in construction cost overruns. Adding high-performance computing capacity diversifies revenue away from volatile crypto mining toward fixed-rate corporate leases.
Cipher Digital trades at a price-to-sales (P/S) ratio of 21, sitting well above the peer average of 5.4, with Marathon Digital Holdings at 4.2, Riot Platforms at 8.4, and CleanSpark at 3.5, a premium investors will accept only if its high-performance computing conversion yields reliable rental revenue. This week's $850 million convertible debt offering sharpens dilution risks while confirming that Cipher's pivot into high-performance computing infrastructure requires capital-intensive site expansion.
What to watch next for Cipher DigitalInvestors should look toward the company's next earnings report for updated construction timelines and lease revenue metrics. The key operational milestone to monitor is whether initial rent payments from the expanded Barber Lake and Black Pearl campuses begin flowing on schedule to offset rising debt loads.
Is Cipher Digital Stock a Buy?Cipher Digital is still on track for long-term growth. The stock fell due to the additional shares to be issued as part of the convertible note offering, which dilutes shareholders' investment. The risk of owning the stock to finance the data center build-out is share dilution, but this is short-term pain for long-term gain.
The offering comes after it extended the contracted lease for its Barber Lake data center in Colorado City, Texas, from 10 to 20 years. This extension means more revenue, increasing the facility's total contracted revenue from $3.8 billion to over $9 billion.
In light of the additional $5.2 billion in revenue Cipher will generate under the new agreement, the dilution from the recent convertible note offering appears very minor. Investors can look at the sell-off as a buying opportunity.
Next catalyst to watch: The company's Q3 2026 earnings release, likely in November, where investors will look for additional data center development news.
Risk note: The primary risk stems from share dilution or cost overruns on debt-funded data center construction.
Bull points:
The 20-year Barber Lake lease amendment expands contracted long-term revenue commitment to over $9 billion.Zero-coupon convertible notes allow the company to raise $850 million without incurring immediate cash interest expenses.Transitioning capacity to high-performance computing provides predictable, long-term rental income distinct from Bitcoin price swings.Bear points:
Exchanging notes for 40.7 million common shares causes immediate equity dilution for existing shareholders.Cipher must absorb the first $359.3 million in Barber Lake construction cost overruns, increasing execution risk.The company's P/S ratio of 21.8 represents a steep premium over crypto mining peers.
Cipher Digital plánuje soukromou emisi bezúročných konvertibilních prioritních dluhopisů se splatností v roce 2032 v objemu 850 mil. USD s opcí na navýšení objemu emise o 150 mil. USD.
NEW YORK, Oct. 13, 2026 (GLOBE NEWSWIRE) -- Cipher Digital Inc. (NASDAQ:CIFR) (“Cipher” or the “Company”), a leading developer, owner and operator of industrial-scale data centers, today announced its intention to offer, subject to market and other conditions, $850.0 million aggregate principal amount of 0.00% convertible senior notes due 2032 (the “notes”) in a private offering (the “offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Cipher also expects to grant the initial purchasers of the notes a 13-day option to purchase up to an additional $150.0 million aggregate principal amount of notes. Concurrently with the offering, Cipher expects to enter into separate, privately negotiated transactions to exchange a portion of its outstanding 1.75% Convertible Senior Notes due 2030 (the “2030 notes”).
The final terms of the notes, including the initial conversion rate and certain other terms, will be determined at the time of pricing of the offering. When issued, the notes will be senior, unsecured obligations of Cipher. The notes will not bear regular interest, and the principal amount of the notes will not accrete. The notes will mature on November 1, 2032, unless earlier repurchased, redeemed or converted. Prior to August 1, 2032, the notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, the notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Cipher will settle conversions by paying or delivering, as applicable, cash, shares of its common stock, par value $0.001 per share (“common stock”), or a combination of cash and shares of its common stock, at Cipher’s election.
The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Cipher’s option at any time, and from time to time, on or after November 5, 2029 and on or before the 30th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Cipher’s common stock exceeds 130% of the conversion price for a specified period of time. Cipher may also redeem the notes, in whole but not in part, at any time if the aggregate principal amount of notes then outstanding is less than 10% of the aggregate principal amount of notes initially issued (including any notes issued pursuant to the initial purchasers’ option to purchase additional notes). The redemption price will be equal to the principal amount of the notes to be redeemed, plus accrued and unpaid special interest and additional interest, if any, to, but excluding, the redemption date.
If certain corporate events that constitute a “fundamental change” occur, then, subject to a limited exception, noteholders may require Cipher to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid special interest and additional interest, if any, to, but excluding, the applicable repurchase date. In addition, unless Cipher has previously called all outstanding notes for redemption, noteholders may at their option require Cipher to repurchase their notes for cash on November 1, 2030 at a repurchase price equal to the principal amount of the notes to be repurchased, plus accrued and unpaid special interest and additional interest, if any, to, but excluding, the repurchase date.
Cipher intends to use the net proceeds from the offering to fund the cost of entering into the capped call transactions described below and use the remainder of the net proceeds to fund additional equity investment in the Barber Lake project, support the build-out of its high-performance computing (HPC) strategy across its near-term pipeline, continue to expand its pipeline of development sites, and for general corporate purposes. If the initial purchasers exercise their option to purchase additional notes, then Cipher intends to use a portion of the additional net proceeds to fund the cost of entering into additional capped call transactions.
Concurrently with the offering, in separate, privately negotiated transactions, Cipher expects to enter into exchange agreements with a limited number of holders of the 2030 notes to exchange a portion of the outstanding 2030 notes for shares of Cipher’s common stock (the “Concurrent 2030 Notes Exchange”).
Holders of the 2030 notes that participate in any such exchanges may purchase or sell shares of Cipher’s common stock in the open market and/or enter into or unwind various derivative transactions to unwind any hedge positions they may have with respect to the 2030 notes or to hedge their exposure in connection with these transactions. These activities could increase (or reduce the size of any decrease in) or decrease (or reduce the size of any increase in) the market price of Cipher’s common stock.
In connection with the pricing of the notes, Cipher expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers or their affiliates and/or one or more other financial institutions (the “option counterparties”).
The capped call transactions will cover, subject to customary anti-dilution adjustments, the number of shares of Cipher’s common stock that will initially underlie the notes. The capped call transactions are generally expected to reduce the potential dilution to Cipher’s common stock upon any conversion of the notes and/or offset any potential cash payments Cipher is required to make in excess of the principal amount of converted notes, as the case may be, with such reduction and/or offset subject to a cap.
In connection with establishing their initial hedges of the capped call transactions, Cipher expects the option counterparties or their respective affiliates will enter into various derivative transactions with respect to Cipher’s common stock and/or purchase shares of Cipher’s common stock concurrently with or shortly after the pricing of the notes, including with, or from, certain investors in the notes. This activity could increase (or reduce the size of any decrease in) the market price of Cipher’s common stock or the notes at that time.
In addition, Cipher has been advised to expect that the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Cipher’s common stock and/or purchasing or selling shares of Cipher’s common stock or other securities of Cipher in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so (x) on each exercise date for the capped call transactions, which are expected to occur on each trading day during the 30 trading day period beginning on the 31st scheduled trading day prior to the maturity date of the notes and (y) following any early conversion of the notes, any repurchase of the notes by Cipher on any fundamental change repurchase date, any optional repurchase date, any redemption date or any other date on which the notes are repurchased by Cipher, in each case if Cipher exercises the relevant election to terminate the corresponding portion of the capped call transactions). This activity could also cause or avoid an increase or a decrease in the market price of Cipher’s common stock or the notes, which could affect noteholders’ ability to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of notes, it could affect the number of shares, if any, and value of the consideration that noteholders will receive upon conversion of the notes.
The offer and sale of the notes and any shares of common stock issuable upon conversion of the notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any shares of common stock issuable upon conversion of the notes, nor will there be any sale of the notes or any such shares in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
J. Wood Capital Advisors LLC is acting as financial advisor to the Company.
About Cipher
Cipher develops and operates industrial-scale data centers engineered for next-generation computing at the highest standards of innovation, precision, and excellence. The Company brings together deep expertise across power sourcing, construction, engineering, operations, real estate, and technology to deliver high-quality data centers purpose built for HPC workloads. By partnering with premier tenants, Cipher seeks to meet the growing demand for industrial-scale data center capacity and become a leading HPC development platform that is built for hyperscale.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as statements regarding the anticipated terms of the notes being offered, the completion, timing and size of the proposed offering of the notes, the initial purchasers’ option to purchase additional notes, the expected amount and intended use of the net proceeds, the anticipated terms of, and the effects of, the Concurrent 2030 Notes Exchange and the anticipated terms of, and the effects of entering into, the capped call transactions, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and our management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: whether the offering and the Concurrent 2030 Notes Exchange will be completed on the anticipated terms or at all, whether the capped call transactions will become effective, volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts we may make to modify aspects of our business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, the ability of Cipher’s customers, tenants, and other counterparties to perform their contractual obligations, the ability of Cipher to complete its data centers and future strategic growth initiatives in a timely manner or within anticipated cost estimates, risks relating to the development, construction, and operation of Cipher’s data centers, the availability of capital and financing on acceptable terms, changes in market demand, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on February 24, 2026, and our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026 filed with the SEC on August 4, 2026, and in Cipher’s subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Contacts:
Investor Contact:
Courtney Knight
Head of Investor Relations at Cipher Digital [email protected]
Media Contact:
Ryan Dicovitsky
Dukas Linden Public Relations [email protected]
Cipher Mining očekává silnou poptávku po AI infrastruktuře, kterou omezuje nedostatek elektrické kapacity. Projekt Barber Lake má od 10. roku přinést smluvní tržby ve výši 5,2 mld. USD během následující dekády.
Cipher Mining (NASDAQ:CIFR) CFO Greg Mumford said demand for AI infrastructure remains strong despite investor concerns over financing costs, construction execution and regulatory uncertainty, arguing that scarce power availability continues to be the primary constraint for prospective data center tenants.
Speaking at KBW’s inaugural AI Infrastructure Summit, Mumford said the company is in a period where investors are concentrating more heavily on its ability to physically deliver projects than on its ability to sign new leases. Cipher has signed leases and financed projects, he said, but is now in the construction phase before related cash flow begins appearing in its income statement.
“There are certainly a bunch of risks, some of them real and that deserve a healthy amount of respect,” Mumford said. He cited higher interest rates, increased debt issuance, construction complexity, tight labor markets and supply-chain pressure. However, he said concerns that underlying AI infrastructure demand is weakening are overdone. “We are continuing to see … lease terms improving despite the backdrop in equity markets,” Mumford said. “I still think scarce power is the constraint and demand is not changing from what we can see.”
Barber Lake Lease Points to Long-Term Asset Value Mumford highlighted Cipher’s Barber Lake facility in Texas as evidence of what he described as long-term value in AI data center assets. The company disclosed a lease commitment beginning 10 years in the future that adds $5.2 billion in contracted revenue over the subsequent decade, he said.
The first 10 years of the Barber Lake arrangement are under a lease with Fluidstack that is supported by a Google backstop, according to Mumford. Cipher structured debt on the project to fully amortize during that first term. By the start of the second 10-year lease, which directly faces an AI lab, the data center is expected to be substantially delevered, he said.
Mumford said AI campuses have different site requirements than conventional cloud data centers, including more land, significant power availability, room to expand and access to skilled labor. He argued that locations such as West Texas, Louisiana, Indiana and North Dakota could become top-tier markets for AI campuses even if they were not historically primary cloud data center markets.
He also said lease structures across the industry have strengthened. Terms initially centered on 10-year modified gross leases, but 20-year triple-net leases are increasingly becoming the baseline starting point in discussions, he said.
Texas Regulatory Process May Affect Timing Cipher’s Colchis project received conditional base-load status for 1 gigawatt in ERCOT’s Batch Zero process, with final designations expected following an audit in December. Mumford called the potential 1-gigawatt designation a significant development for the company.
He said the Texas Commission on Environmental Quality’s pause on data center permits until audits are complete could affect project timing, but he does not expect the process to weaken fundamental demand. Sites that already have approvals or sit outside processes that delay development could become more valuable to tenants, he said.
“Time to power and scarcity still drive most decision-making that we are seeing on the leasing front,” Mumford said.
While he declined to discuss demand at specific projects during a quiet period, Mumford said Cipher maintains active discussions with major hyperscalers, chip developers and other potential tenants with strong credit profiles.
Financing Costs Rise as Investors Focus on Execution Mumford said both benchmark interest rates and credit spreads for data center debt have increased. He attributed the widening spreads partly to investor attention on risks between lease signing and completion of a data center, including construction execution, labor availability and equipment procurement.
He said Cipher intends to protect returns by underwriting higher financing and equipment costs into new projects. Rather than relying only on higher lease rates, developers can use other contractual provisions, including delivery-service-level agreements, termination terms and pre-agreed cost-sharing arrangements, to manage risks.
Cipher’s prior project bonds were priced progressively tighter, with Cipher Compute at 7.13%, Black Pearl Compute at 6.13% and Stingray at 6%, according to the discussion. Mumford said the company’s bonds continue to trade near par and at what he described as relatively efficient yields compared with peers, though future financing would likely carry higher costs.
“The cost may change, but I don’t think our access to capital is diminishing,” he said.
Capital Recycling and Industry Consolidation Looking ahead, Mumford said Cipher expects capital recycling to be central to its business model. Potential options include refinancing stabilized assets, monetizing portions of projects or selling entire assets, he said. The company plans to evaluate each option based on its ability to create returns for equity holders without dilution.
He also said the AI infrastructure sector could eventually consolidate around companies that can originate sites, execute construction, secure efficient financing and recycle capital. Cipher has developed in-house engineering, procurement and construction management capabilities, along with greenfield site origination and financing operations, he said.
On construction costs, Mumford said capital expenditure per megawatt depends on tenant specifications, including redundancy requirements, backup generation and cooling systems. Cipher’s project budgets include land, permitting, engineering, development fees and other costs required to take a project from site acquisition through delivery, he said.
About Cipher Mining (NASDAQ:CIFR) Cipher Mining Inc is a digital asset mining company focused on developing and operating infrastructure for Bitcoin mining in the United States. The company runs large-scale data centers equipped with specialized application-specific integrated circuit (ASIC) machines that process transactions and secure the Bitcoin network.
In addition to mining Bitcoin, Cipher Mining develops and manages the supporting infrastructure required for its operations, including power procurement, electrical systems, cooling, site development and data center management.
Těžaři bitcoinu čelí ztrátám, protože průměrné hotovostní náklady ve 2. čtvrtletí byly asi 75 500 USD na minci, zatímco bitcoin v červnu skončil na 58 400 USD. Mnozí proto pronajímají kapacity pro AI, kde je výnos na megawatt výrazně vyšší.
It cost bitcoin miners an average of about $75,500 in cash to produce one coin in the second quarter. Meanwhile, bitcoin itself ended June at $58,400, less than half its October 2025 record high. That gap pushed publicly traded miners below cash breakeven as a group, according to CoinShares’ Q2 2026 Bitcoin Mining Report by Luke Nolan. Cash cost covers day-to-day spending such as power, staff and interest, but not equipment wear.
Key Takeaways: Listed miners spent about $75,500 in cash per bitcoin last quarter, well above the coin’s June close. Grid delays and state restrictions have turned existing power connections into a scarce asset for AI data centers. WGMI broadened its strategy in August to include data centers, AI chipmakers and power producers alongside miners. See more: Why Bitcoin Miners Stopped Tracking Bitcoin’s Price
Rather than wait out the slump, many miners are renting their power sites to AI and high-performance computing (HPC) customers. The report estimates AI computing earns about $1.5 million in yearly profit per megawatt of power, versus $0.5 million for mining.
The shift is changing what investors own when they buy mining stocks. Companies with signed AI or HPC contracts traded at an average 12.9 times expected sales for the next year, the report found. Miners without such contracts, by contrast, averaged 3.7 times. In other words, the market values those miners at less than a third as much per dollar of sales.
Power is now the scarce resource. At least 151 restrictions on data center development remain in force across the U.S., the report showed. New York, for example, enacted the first statewide pause on permits for large data centers in July.
Power projects totaling about 2,600 gigawatts are also waiting to connect to the U.S. grid, the report said. That backlog is roughly double the grid’s installed capacity.
As a result, prices have climbed for sites that already have power. A $3.5 billion deal for three leased Northern Virginia AI facilities worked out to about $27 million per megawatt, the report noted. By comparison, the market values some listed miners’ powered but unleased sites at less than $3 million per megawatt.
Bitcoin Miners Pay to Stop Mining Some companies are paying to exit. Core Scientific, Inc. (CORZ) paid $41.9 million to cancel an order for next-generation mining chips, according to the report. Those chips are the most efficient mining hardware produced to date.
Mining brings in about 13% of the company’s revenue as it converts sites for AI use, the report said. Its remaining machines run at a loss, only to use up power it has already agreed to buy.
Keel Infrastructure Corp. (KEEL), formerly Bitfarms, stopped mining on June 29, according to the report. That makes it the first listed miner headed for zero mining revenue, starting in the third quarter.
At IREN Ltd. (IREN), AI cloud revenue of $70.5 million topped mining revenue of $66.7 million for the first time, per the report.
Most of the sector’s contracted AI revenue has not arrived yet, though. More than $100 billion in disclosed contracts supports only about $1.1 billion in yearly AI and HPC revenue, according to the report.
Several of these miners anchor the CoinShares Bitcoin Mining and Digital Power ETF (WGMI). Eight of the report’s 12 companies ranked among its top 10 holdings as of September 29, CoinShares data show.
On August 18, the fund broadened its strategy to include data center operators, AI chipmakers, power producers and HPC firms. The actively managed ETF does not, however, hold bitcoin directly, CoinShares said.
WGMI held $291.5 million in assets as of September 28 and charges a 0.75% expense ratio, according to CoinShares.
Cipher Digital Inc. (CIFR), the fund’s largest holding, will likely exit mining by the end of 2027, the report said. In the first half, it sold $123.4 million of bitcoin at a $47.7 million loss to help fund buildings for data center tenants.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
Cipher Digital prodloužila nájem Barber Lake na 20 let a zvýšila smluvní výnosy zhruba z 3,8 miliardy USD na více než 9 miliard USD. Dodatečných 10 let má přinést asi 5,2 miliardy USD.
Key Takeaways Cipher Digital extends Barber Lake's lease to 20 years, raising contracted revenues above $9 billion.The added 10-year term is expected to generate about $5.2 billion in incremental contracted revenues.Barber Lake halls are slated for phased delivery from Q4 2026 to Q1 2027, with rent starting upon operation. Cipher Digital (CIFR - Free Report) has strengthened the long-term revenue visibility of its Barber Lake data center after extending the facility’s contracted lease duration from 10 years to 20 years. The agreements increase total contracted revenues at the Texas-based campus from roughly $3.8 billion to more than $9 billion, materially expanding the economic value of one of Cipher’s key high-performance computing assets.
The extension comes through an amendment to Cipher’s existing lease with Fluidstack and a binding commitment from a leading AI lab to lease Barber Lake for an additional 10 years after the current lease expires. The second 10-year term is expected to generate approximately $5.2 billion in incremental contracted revenues, with economic terms that are expected to be substantially consistent with the existing Barber Lake agreement.
Cipher has also revised the delivery schedule for Barber Lake as tenant requirements continue to evolve. Individual data halls are now expected to be delivered in phases from the fourth quarter of 2026 through the first quarter of 2027, with rent beginning as each hall becomes operational. The first rent commencement remains expected in the fourth quarter of 2026, and the company said it remains on track with the revised schedule.
The agreement also provides greater clarity around development costs. Cipher will absorb the first $359.3 million of costs above the facility’s original budget, while the tenant will reimburse the company for 50% of additional costs beyond that amount over the 20-year term. These reimbursements will be paid through additional rent and structured to provide Cipher with a contracted rate of return on the reimbursed investment.
Final Outlook on CIFRThe expanded Barber Lake agreement significantly improves Cipher Digital’s long-term contracted revenue base and demonstrates sustained demand for large-scale AI and high-performance computing infrastructure. The 20-year commitment also gives the company greater visibility into future cash flows while reinforcing Barber Lake’s role as a long-lived data center asset.
However, CIFR’s capital-intensive expansion into HPC and AI data centers requires substantial upfront investment, which could increase financing needs, leverage and potential shareholder dilution while exposing the company to execution risks such as project delays and cost overruns.
Over the past three months, shares of this Zacks Rank #4 (Sell) company have declined 28.6% compared with the industry's loss of 10.3%.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks from the technology services sector are Figure Technology Solutions, Inc. (FIGR - Free Report) and ScanSource (SCSC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for FIGR’s 2026 earnings per share (EPS) has moved northward by two cents to $1.20 over the past month.
The consensus estimate for SCSC’s 2027 EPS has moved up 8.3% to $4.56 over the past two months.
UBS zahájila pokrytí pěti akcií datacenter pro AI s doporučením Buy a očekává rychlý růst díky omezené nabídce výpočetní kapacity a silnému přístupu k elektřině. Skupina už má zajištěno asi 5 GW pronajaté kapacity v hodnotě zhruba 125 miliard dolarů smluvních příjmů a dalších 12 GW expanzního potenciálu v pipeline.
UBS has initiated coverage on five AI data center colocation stocks with Buy ratings, citing constrained compute supply and favorable power access positioning the group for rapid growth as AI adoption accelerates.
The bank started coverage of Hut 8 Mining Corp (TSX:HUT, Unlisted (US):HUTMF), TeraWulf (NASDAQ:WULF), Applied Digital (NASDAQ:APLD), Core Scientific (NASDAQ:CORZ) and Cipher Digital (NASDAQ:CIFR), pointing to their cryptomining legacies and grid access as key advantages.
UBS estimates the group has already secured roughly 5GW of leased capacity, worth about $125 billion in contracted revenue, with an additional 12GW of expansion potential in the pipeline.
Time to power remains the primary constraint on scaling compute, UBS said, with global AI infrastructure requirements expected to triple to roughly 260GW of new data center capacity by 2030.
The bank forecasts average annual EBITDA growth of about 80% across its coverage universe from 2027 to 2029, roughly 10% above Street estimates for 2029. Shares currently trade at 12 to 18 times 2028 EBITDA estimates, which UBS said largely reflects already contracted assets rather than pipeline upside. Price targets imply average upside of 36%.
UBS noted the stocks have fallen roughly 45% from recent highs, though they remain up about 45% over the last 12 months, weighed down by concerns over frontier model pacing, NIMBY opposition, power uncertainty in Texas and rising yields.
The bank sees a multi-year catalyst path built around delivery execution, pipeline clarity, new lease agreements, declining risk premiums, potential REIT conversion and strategic value tied to the gap between infrastructure and compute.
Hut 8 is UBS's top pick in the group, with a $143 price target implying 45% upside, based on its pipeline size, leasing track record and tenant quality. TeraWulf carries a $24 target (41% upside), supported by its brownfield conversion strategy near population centers. Applied Digital has a $38 target (35% upside), with UBS flagging it as a strong REIT conversion candidate. Core Scientific's $24 target implies 33% upside, aided by its geographic diversification and AMD tenant relationship. Cipher Mining, with a $23 target and 25% upside, carries the widest risk-reward skew in the group at roughly +145%/-60%, given its concentration in Texas.
UBS cautioned that the sector remains early-stage, with only about 15% of contracted capacity delivered so far, and that delivery delays or further rate increases could pressure valuations given the group's leverage.
Additional 10-Year Term adds ~$5.2 Billion of Contracted Revenue at Barber Lake | Source: Cipher Digital Inc.
NEW YORK, Sept. 25, 2026 (GLOBE NEWSWIRE) -- Cipher Digital Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”), a leading developer, owner, and operator of industrial-scale data centers, today announced a series of agreements that extend the contracted lease duration of its Barber Lake data center in Colorado City, Texas from 10 years to 20 years and increase total contracted revenue at the facility from $3.8 billion to over $9 billion.
Cipher has executed an amendment to its existing lease with Fluidstack (the “Barber Lake Lease”) that is coupled with a binding commitment with a leading AI lab to lease the facility for an additional 10-year term following the conclusion of the Barber Lake Lease. The additional 10-year commitment with the leading AI lab, which will be governed by a separate lease containing economic terms substantially consistent with the Barber Lake Lease, is expected to generate approximately $5.2 billion of incremental contracted revenue.
In connection with change orders and the continued evolution of tenant requirements at Barber Lake, the lease amendment establishes a phased delivery schedule for the site, with individual data halls expected to be delivered from the fourth quarter of 2026 through the first quarter of 2027. Rent will commence for each data hall as it is delivered, with the first rent commencement expected in the fourth quarter of 2026. Cipher remains on track with the revised delivery schedule.
In connection with the amendment and the change orders, the Company, Fluidstack and the leading AI lab established a cost reimbursement framework, pursuant to which the Company will bear the first $359.3 million of costs in excess of the initial budgeted amount under the Barber Lake Lease. The tenant will reimburse the Company over the aggregate twenty-year term for 50% of any such costs above that amount, payable as additional rent and calculated in a manner to provide Cipher with a contracted rate of return on such reimbursed amounts.
“Extending Barber Lake’s contracted life from 10 to 20 years and adding approximately $5.2 billion of contracted revenue reflects the enduring value of the infrastructure we're building,” said Tyler Page, Chief Executive Officer. “Barber Lake was designed as a long-lived, mission-critical asset, and securing a firm commitment that extends well beyond the original lease term demonstrates the long-term utility and strategic relevance of the campus. We believe this transaction underscores the quality and enduring strength of our sites, as well as the durability of demand for hyperscale computing capacity.”
About Cipher
Cipher develops and operates industrial-scale data centers engineered for next-generation computing at the highest standards of innovation, precision, and excellence. The Company brings together deep expertise across power sourcing, construction, engineering, operations, real estate, and technology to deliver high-quality data centers purpose built for HPC workloads. By partnering with premier tenants, Cipher seeks to meet the growing demand for industrial-scale data center capacity and become a leading HPC development platform that is built for hyperscale. To learn more about Cipher, please visit https://www.cipherdigital.com/.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as statements about the Company’s beliefs and expectations regarding its planned business model and strategy, timing and likelihood of success, capacity, functionality and operation of its data centers, expectations regarding its data center development and operations, potential strategic initiatives, and management plans and objectives, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and its management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts it may make to modify aspects of its business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, the ability of Cipher’s customers, tenants, and other counterparties to perform their contractual obligations, the ability to Cipher to complete its data centers and future strategic growth initiatives in a timely manner or within anticipated cost estimates, risks relating to the development, construction, and operation of Cipher’s data centers, the availability of capital and financing on acceptable terms, changes in market demand, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Cipher’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on February 24, 2026, Cipher’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 filed with the SEC on August 4, 2026, and in Cipher’s subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Website Disclosure
The Company maintains a dedicated investor website at https://investors.cipherdigital.com/ (“Investors’ Website”). Financial and other important information regarding the Company is routinely posted on and accessible through the Investors’ Website. Cipher uses its Investors’ Website as a distribution channel of material information about the Company, including through press releases, investor presentations, reports and notices of upcoming events. Cipher intends to utilize its Investors’ Website as a channel of distribution to reach public investors and as a means of disclosing material non-public information for complying with disclosure obligations under Regulation FD. In addition, you may sign up to automatically receive email alerts and other information about the Company by visiting the “Email Alerts” option under the Investor Resources section of Cipher’s Investors’ Website and submitting your email address.
Contacts:Investor Contact:
Courtney Knight
Head of Investor Relations at Cipher Digital [email protected]
Media Contact:
Ryan Dicovitsky
Dukas Linden Public Relations [email protected]
Akcie Cipher Digital vzrostly ve středu o 13 % poté, co firma získala podmíněné připojení k síti pro datová centra o výkonu 3,2 GW v Texasu. Zatím ale nejde o schválení připojení k síti.
Cipher Digital (NASDAQ:CIFR) shares jumped 13% Wednesday after the company secured conditional grid classifications for 3.2 gigawatts of Texas data-center capacity, though the designations stop short of authorizing power connections.
The company first disclosed the 3.2-gigawatt total last week, then identified the individual sites in a breakdown posted on X on Tuesday.
After the conclusion of follow-up discussions with our transmission service providers, Cipher has received the following designations:
— Cipher Digital (@CipherInc) September 15, 2026 Under the Electric Reliability Council of Texas’s Batch Zero procedure, Cipher said 1.1 gigawatts received conditional base-load status, comprising Stingray’s 100 megawatts and Colchis’s one gigawatt.
That status means ERCOT’s grid study treats the capacity as established, while another 2.1 gigawatts remain under conditional study.
The capacity under study comprises Mikeska’s 500 megawatts, Apollo’s 900 megawatts, Stingray Phase II’s 200 megawatts and McLennan’s 500 megawatts.
These classifications follow Texas Governor Greg Abbott’s August order to audit data-center projects involved in ERCOT’s interconnection process.
Separately, Cipher, Fluidstack and Anthropic (Unlisted (US):ANTHRO) pledged $10 million through the Colorado City Water Infrastructure Foundation to restore and expand Colorado City’s water system after this summer’s shortages.
For its grid projects, Cipher said it will release final designations in December following the audit.
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Cipher Digital buduje plynovodní přípojky na více místech, které mají podpořit až 2,5 GW nové výroby elektřiny pro datová centra. Nová kapacita má zvýšit pronajímatelnou kapacitu HPC.
Developing Lateral Pipelines Capable of Delivering Natural Gas Sufficient to Support Up to 2.5 GW of New Generation Across Multiple Sites
New Generation Expected to Increase Cipher’s Leasable HPC Data Center Capacity
NEW YORK, Sept. 03, 2026 (GLOBE NEWSWIRE) -- Cipher Digital Inc. (NASDAQ: CIFR) (“Cipher” or the “Company”), a leading developer, owner, and operator of industrial-scale data centers, today announces that it has begun the development of lateral pipelines at multiple sites to deliver natural gas to support bring-your-own-generation capacity.
The lateral pipelines will connect Cipher’s sites to nearby natural gas supplies, enabling on-site generation of up to 2.5 gigawatts (“GW”) of electricity. Cipher will work with power providers to develop and operate generation infrastructure at these sites, and building the lateral pipelines is a significant step toward making new power available to the sites before the end of 2027.
The Company plans to use this bring-your-own-generation capacity to develop and lease additional industrial-scale data center capacity to premier tenants for HPC workloads. The proximity of Cipher’s sites to significant natural gas resources provides an excellent opportunity for the Company to expand its leasing portfolio.
“Securing and delivering power is the foundation of everything we do and bringing our own electricity generation allows us to unlock significant new capacity quickly,” said Tyler Page, Chief Executive Officer. “By developing these lateral pipelines, we are taking a decisive step toward adding up to 2.5 GW of power to our portfolio, and we plan to seek grid connection for this generation capacity, in an effort to proactively contribute to greater grid stability in the communities in which we build our data centers.”
About Cipher
Cipher develops and operates industrial-scale data centers engineered for next-generation computing at the highest standards of innovation, precision, and excellence. The Company brings together deep expertise across power sourcing, construction, engineering, operations, real estate, and technology to deliver high-quality data centers purpose built for HPC workloads. By partnering with premier tenants, Cipher seeks to meet the growing demand for industrial-scale data center capacity and become a leading HPC development platform that is built for hyperscale. To learn more about Cipher, please visit https://www.cipherdigital.com/.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as statements about the development and timing of the lateral pipelines, the amount and timing of power generation capacity, the expected impact on the Company’s leasable data center capacity, the Company’s beliefs and expectations regarding its planned business model and strategy, timing and likelihood of success, capacity, functionality and operation of its data centers, expectations regarding its data center development and operations, potential strategic initiatives, and management plans and objectives, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and its management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts it may make to modify aspects of its business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Cipher’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on February 24, 2026, Cipher’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 filed with the SEC on August 4, 2026, and in Cipher’s subsequent filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Website Disclosure
The Company maintains a dedicated investor website at https://investors.cipherdigital.com/ (“Investors’ Website”). Financial and other important information regarding the Company is routinely posted on and accessible through the Investors’ Website. Cipher uses its Investors’ Website as a distribution channel of material information about the Company, including through press releases, investor presentations, reports and notices of upcoming events. Cipher intends to utilize its Investors’ Website as a channel of distribution to reach public investors and as a means of disclosing material non-public information for complying with disclosure obligations under Regulation FD. In addition, you may sign up to automatically receive email alerts and other information about the Company by visiting the “Email Alerts” option under the Investor Resources section of Cipher’s Investors’ Website and submitting your email address.
Contacts:
Investor Contact:
Courtney Knight
Head of Investor Relations at Cipher Digital [email protected]
Media Contact:
Ryan Dicovitsky
Dukas Linden Public Relations [email protected]
Cipher Digital dodala počáteční kapacitu Black Pearl HPC o dva měsíce dříve, nájem začne v srpnu. Zároveň upsala zajištěné dluhopisy Stingray v objemu 810 mil. USD s kuponem 6 % a nabídka byla zhruba osmkrát přeupsána.
Key Takeaways Cipher Digital delivered initial Black Pearl HPC capacity two months early, with rent starting in August.CIFR's portfolio totals about 5.3 GW across 11 sites, including a 4.4-GW future-development pipeline.CIFR priced $810 million of Stingray secured notes at 6%, with the offering about eight times oversubscribed. Cipher Digital Inc. (CIFR - Free Report) used its second-quarter 2026 earnings call to emphasize execution on its shift toward contracted hyperscale data centers. Black Pearl provided the clearest proof point, with initial HPC capacity delivered two months early and rent beginning in August.
Cipher reported a loss of 65 cents per share, wider than the Zacks Consensus Estimate of a loss of 21 cents. Revenues of $24.8 million also missed the Zacks Consensus Estimate of $29.3 million. During the earnings call, management focused on Black Pearl execution, leasing demand and project financing.
Cipher Accelerates Black Pearl DeliveryCEO Tyler Page said Cipher accelerated initial Black Pearl capacity at the tenant's request, demonstrating that the company can compress construction schedules when the economics and tenant coordination support it.
Page clarified during the Jefferies Q&A that the early handoff applies to part of the project. The remaining Black Pearl delivery deadlines remain unchanged.
At Barber Lake, Page said the approximately 168-critical-IT-megawatt first phase remains on track, with rental payments expected to begin in October. Stingray remains targeted for delivery in the first half of 2027.
CIFR Expands Its Texas PipelinePage said Cipher's portfolio now totals about 5.3 GW across 11 sites, including a 4.4-GW future-development pipeline.
The company added an option on Apollo, a site near San Antonio with up to 900 MW, and submitted a planned 200-MW Stingray expansion as a studied load in ERCOT's Batch Zero process.
Page also said the three executed data-center campus leases are expected to generate about $793 million of average annualized net operating income from October 2026 through September 2036.
Cipher Sees Its Strongest Demand BackdropA Chardan analyst asked about tenant demand and partner selection. Page described the demand environment as the strongest Cipher has seen, with higher rents, longer lease terms and more triple-net structures.
A Macquarie analyst asked about Reveille and Ulysses. Page said multiple parties are interested in both sites, while Cipher is prioritizing counterparty quality, lease terms and risk-adjusted returns over signing the first available deal.
In response to H.C. Wainwright, Page said Odessa, Reveille and Ulysses represent 477 MW that have cleared the major milestones needed to support lease execution.
CIFR Extends Its Project Financing ModelCFO Greg Mumford said the $810 million Stingray secured-notes offering priced at a 6% coupon and was about eight times oversubscribed. The financing funds the project through substantial completion.
Mumford said Cipher ended June with $870 million of unrestricted liquidity, excluding undrawn revolver availability, and no cash borrowings on its revolver.
During the Jefferies Q&A, Mumford added that near-term sites can be handled without an equity raise. He also said a future lease spanning several hundred megawatts or more could create an equity requirement.
Cipher Flags ERCOT Timing and Cost PressureA Morgan Stanley analyst asked about Texas interconnection uncertainty following the governor's letter. Page said the expected near-term Batch Zero decision would be delayed and declined to provide a new timing forecast.
Page said Cipher had completed the required attestations and water surveys and expects its sites to remain well positioned. He added that delays increase the value of near-term megawatts outside the batch process and of self-generation options.
Rosenblatt and Needham analysts pressed on procurement and construction costs. Page said labor and equipment inflation are pushing future budgets higher, while current builds are running at contingency levels, and some contract structures cap Cipher's exposure.
CIFR Stays Focused on ExecutionPage said Cipher does not anticipate additional capital investment in bitcoin mining as it prioritizes HPC. The operating focus is on delivering current campuses and converting development sites into leases.
Mumford's financing commentary reinforced that strategy, with project-level debt intended to fund contracted builds while preserving parent-company liquidity for the development pipeline.
Cipher's Zacks Signals Remain MixedCIFR carries a Zacks Rank #3 (Hold). Under the Style Score framework, the strongest historical combinations pair Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks with A or B Style Scores, making the Hold rank a more neutral starting point.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Momentum Score of A indicates favorable momentum characteristics, while the Growth Score of C is middle-tier and the Value Score of F and VGM Score of D are weaker. The Zacks Rank can change as earnings estimates are revised after the just-reported results.
Cipher Digital oznámila konferenční hovor k obchodní aktualizaci za 2. čtvrtletí 2026. V úvodu zaznělo, že materiály obsahují výhledová prohlášení o finančním výhledu, obchodních plánech a cílech.
Cipher Digital Inc. (CIFR) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT
Company Participants
Courtney Knight - Head of Investor Relations
Rodney Page - CEO & Director
Greg Mumford - Chief Financial Officer
Conference Call Participants
Stephen Byrd - Morgan Stanley, Research Division
Paul Golding - Macquarie Research
Bill Papanastasiou - Chardan Capital Markets, LLC, Research Division
Richard Choe - JPMorgan Chase & Co, Research Division
Jonathan Petersen - Jefferies LLC, Research Division
Michael Colonnese - H.C. Wainwright & Co, LLC, Research Division
Christopher Brendler - Rosenblatt Securities Inc., Research Division
Michael Chen - Needham & Company, LLC, Research Division
Presentation
Operator
Ladies and gentlemen, thank you for standing by. Welcome to Cipher Digital's Second Quarter 2026 Business Update Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would like now to turn the conference over to Courtney Knight, Head of Investor Relations. Please go ahead.
Courtney Knight
Head of Investor Relations
Good morning, and thank you for joining us on this conference call to address Cipher Digital's business update for the second quarter of 2026. Joining me on the call today are Tyler Page, Chief Executive Officer; and Greg Mumford, Chief Financial Officer.
Please note that our press release and presentation can be found on the Investor Relations section of the company's website, where this conference call will also be simultaneously webcast. Please also note that this conference call is the property of Cipher Digital, and any taping or other reproduction is expressly prohibited without prior consent.
Before we start, I'd like to remind you that the following discussion as well as our press release and presentation contain forward-looking statements. These statements include, but are not limited to, Cipher's financial outlook, business plans and objectives and other future events and developments, including statements about the market potential of our business operations, potential competition and our goals
Cipher Mining uvedla, že ve 2. čtvrtletí 2026 urychlila přechod k datovým centrům pro HPC a dokončila 810milionové financování projektu Stingray. Výnosy klesly na 25 milionů USD a čistá ztráta se prohloubila na 268 milionů USD.
Is 2026 The Year to Load Up on Crypto Miners?Cipher Mining NASDAQ: CIFR said its second-quarter 2026 business update reflected continued progress in its transition toward developing and operating data centers for high-performance computing, or HPC, customers. The company highlighted an accelerated delivery at its Black Pearl campus, an $810 million project financing for its Stingray project, and an expanded Texas development pipeline.
Chief Executive Officer Tyler Page said the company’s operating, contracted and future development portfolio totals approximately 5.3 gigawatts across 11 sites. That includes about 4.4 gigawatts of expected future developments, while the remaining capacity consists of contracted HPC projects and legacy Bitcoin mining operations in Odessa, Texas.
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3 Speculative Stocks to Sell Before the Bottom Drops Out“The leases we’ve signed are giving prospective tenants more confidence to come to the table,” Page said, adding that completed financings and construction milestones were reinforcing the company’s position with capital markets and prospective hyperscale customers.
Black Pearl Delivery and Project Construction Cipher said it delivered initial data center capacity at its Black Pearl site in August, two months ahead of the original schedule, following a lease amendment requested by its tenant. Rent has commenced at the facility, according to Page.
Why Now Could Be the Smartest Time to Buy Crypto StocksThe rest of Black Pearl remains on its previously agreed delivery schedule. Phase 1’s remaining data halls are progressing through mechanical, electrical and plumbing fit-out, while Phase 2 is advancing through foundation, structural steel and underground electrical work. Cipher said it had secured approximately 96% of equipment needed across both phases.
At Barber Lake, Phase 1, consisting of approximately 168 critical IT megawatts, remains on track for rental payments to begin in October. The tenant has begun beneficial use of the site, including partial occupancy and deployment of network racks. Cipher said it has secured all equipment required to complete that project.
Construction at Stingray is also progressing, with earthwork, grading, pad preparation and underground electrical work underway. The company expects concrete foundations and steel erection to begin during the third quarter and anticipates delivery in the first half of 2027. About 75% of equipment for Stingray has been secured, Page said.
Stingray Financing and Liquidity Chief Financial Officer Greg Mumford said Cipher completed an $810 million project-level senior secured notes offering in June to fund Stingray through substantial completion. The financing covered approximately 98% of project costs and reimbursed the company for $56.7 million in previously funded expenditures.
The notes carried a 6% coupon and were approximately eight times oversubscribed, according to Mumford. He said the transaction represented Cipher’s third project-level financing and its lowest coupon to date.
Cipher has now completed three project-level financings that fully fund its contracted projects through completion, Mumford said. The company’s notes are designed to amortize during the base terms of the underlying leases.
As of June 30, Cipher had aggregate corporate and project debt outstanding of just over $6 billion. It also had a four-year, $200 million revolving credit facility, including a $50 million accordion feature, with no cash borrowings outstanding on the facility.
Total unrestricted liquidity stood at $870 million at quarter-end, consisting of $832 million in unrestricted cash and cash equivalents and $38 million in Bitcoin. The company also reported about $3.7 billion in restricted project cash, including roughly $3.2 billion reserved for construction.
Mumford said the company did not expect to require additional equity based on its current forecasts and near-term commitments. During the question-and-answer session, however, he said future equity needs could depend on the pace of development spending and the size and timing of potential new lease agreements.
Second-Quarter Financial Results Revenue for the second quarter was $25 million, down from $35 million in the first quarter. Mumford attributed the decline to the decommissioning of Bitcoin mining at Black Pearl as the company transitions toward contracted data center revenue.
GAAP net loss was $268 million, or $0.65 per diluted share, compared with a $114 million loss, or $0.28 per diluted share, in the first quarter. The wider loss was primarily driven by a $150.5 million non-cash warrant remeasurement loss, compared with a $43.6 million non-cash gain in the prior quarter. Interest income was $36 million, reflecting higher average cash balances following Black Pearl and Stingray financings. Interest expense was $67 million, compared with $59 million in the first quarter, due in part to a full quarter of interest on Black Pearl Compute notes. Total assets rose to $7.5 billion at June 30 from $4.3 billion at the end of 2025. Property and equipment increased to $2.13 billion, while construction in progress grew to $1.68 billion as Barber Lake, Black Pearl and Stingray moved forward simultaneously.
Pipeline Expansion and Texas Interconnection Process Cipher added up to 1.1 gigawatts of potential future Texas capacity during the quarter, including an option on a new 900-megawatt site near San Antonio called Apollo and a planned 200-megawatt expansion at Stingray. Apollo has been submitted as a studied load in ERCOT’s Batch Zero interconnection process.
The company expects Reveille and Ulysses to add 270 gross megawatts in 2027, while Colchis, Mikeska and McLennan could add 2 gigawatts in 2028 and 2029. Page said Colchis, Mikeska and McLennan have land secured, deposits funded and required studies and executed facilities agreements submitted to ERCOT.
During the call, Page said a letter from Texas Gov. Greg Abbott could delay anticipated decisions in the ERCOT batch process. He said Cipher had completed water surveys and stood behind its submitted attestations, adding that the company believes its sites will remain well positioned as the process develops.
Page also said the company sees increasing value in capacity outside the batch process, citing 477 megawatts potentially available in 2027 at Odessa, Reveille and Ulysses. Cipher is in discussions with prospective tenants for those sites, though Page said the company is focused on securing favorable terms and counterparties rather than completing the first available deal.
At Odessa, Cipher operated 207 megawatts of Bitcoin mining capacity during the quarter, generating approximately 11.6 exahash per second at an average fleet efficiency of roughly 17.2 joules per terahash. The site mined approximately 346 Bitcoin in the quarter. Cipher said it does not anticipate additional capital investment in Bitcoin mining and is holding early-stage discussions with multiple parties about converting Odessa into an HPC site.
About Cipher Mining (NASDAQ:CIFR)Cipher Mining Inc is a Nasdaq-listed bitcoin mining company that develops, owns and operates large-scale mining facilities across the United States. The company focuses on deploying advanced ASIC hardware and securing long-term low-cost power contracts to optimize bitcoin production. By strategically locating its sites in regions with abundant energy supply, Cipher Mining seeks to maintain a competitive cost structure and deliver efficient hashrate capacity growth.
Founded in 2021 and headquartered in Austin, Texas, Cipher Mining has pursued an integrated approach encompassing site development, equipment procurement and operations management.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Cipher Digital Inc. (CIFR - Free Report) came out with a quarterly loss of $0.65 per share versus the Zacks Consensus Estimate of a loss of $0.21. This compares to a loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -209.52%. A quarter ago, it was expected that this company would post a loss of $0.27 per share when it actually produced a loss of $0.28, delivering a surprise of -3.7%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Cipher Digital Inc., which belongs to the Zacks Technology Services industry, posted revenues of $24.84 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 15.18%. This compares to year-ago revenues of $43.56 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cipher Digital Inc. shares have added about 63.7% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Cipher Digital Inc.?While Cipher Digital Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cipher Digital Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.24 on $37.45 million in revenues for the coming quarter and -$0.79 on $222.71 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
FiscalNote Holdings, Inc. (NOTE - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly loss of $0.43 per share in its upcoming report, which represents a year-over-year change of +55.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
FiscalNote Holdings, Inc.'s revenues are expected to be $19.76 million, down 15.1% from the year-ago quarter.
Cipher Digital má 4. srpna oznámit výsledky za 2. čtvrtletí; tržby se čekají na 29,28 mil. USD a ztráta 21 centů na akcii. Firma dál přechází od těžby Bitcoinu k hyperscale datovým centrům.
Key Takeaways CIFR's Q2 performance is expected to reflect its shift from Bitcoin mining to hyperscale data centers.Barber Lake, Black Pearl and Stingray advanced, but construction and financing costs likely rose.Odessa remained CIFR's main revenue source, though Bitcoin prices and network difficulty posed risks. Cipher Digital Inc. (CIFR - Free Report) is scheduled to report second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $29.28 million, indicating a 32.78% year-over-year decline.
The consensus mark for loss is pegged at 21 cents per share, unchanged over the past 30 days. This implies a year-over-year deterioration from a loss of 12 cents.
Cipher Digital’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, matched in another and missed on the remaining two occasions, with an average negative surprise of 354.05%.
Let’s see how things have shaped up for CIFR before the announcement.
Key Factors to Note Ahead of CIFR’s Q2 ResultsCipher Digital’s second-quarter 2026 results are likely to reflect its shift from Bitcoin mining toward hyperscale data-center development. The company entered the quarter with three long-term campus leases and 700 megawatts of contracted HPC capacity. However, meaningful lease revenues had not begun, leaving near-term performance reliant on mining as construction spending increased. This transition is expected to have improved long-term visibility but pressured second-quarter profitability.
Construction progress at Barber Lake and Black Pearl should remain a central focus. Barber Lake had completed structural steel work and secured about 99% of required equipment, while Black Pearl’s retrofit and expansion phases were advancing with most equipment procured. Higher labor and procurement activity are likely to have increased capital expenditures and working-capital needs in the quarter.
Stingray’s development is another key driver. Cipher began mobilization and substation work while targeting fourth-quarter 2026 energization. Project-level financing reduces funding uncertainty and limits reliance on corporate equity, but additional borrowing raises leverage and interest obligations. Stingray activity is, therefore, expected to have strengthened growth visibility while adding near-term financing costs.
Odessa remained Cipher’s primary operating revenue source entering the second quarter. The 207-megawatt facility operated at roughly 11.6 exahash per second and benefited from power costs near 2.8 cents per kilowatt-hour. Still, revenues remained exposed to Bitcoin prices, network difficulty and production variability, while Black Pearl mining had been decommissioned. These factors may have limited sequential mining revenues despite Odessa’s favorable cost structure.
Finally, operating and financing costs warrant attention. Cipher had expanded staffing to support development, increasing compensation and professional expenses, while project debt lifted interest expense. Higher overhead, financing costs and noncash valuation movements are likely to have kept reported earnings volatile in the quarter.
What Our Model Says About CIFR StockOur proven model does not conclusively predict an earnings beat for Cipher Digital this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
Cipher Digital currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to ConsiderHere are some companies worth considering, as our model shows that they have the right combination of elements to beat on earnings in their upcoming releases:
Dave Inc. (DAVE - Free Report) currently has an Earnings ESP of +1.42% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
DAVE shares have gained 79.8% in the year-to-date period. DAVE is set to report second-quarter 2026 results on Aug. 5.
Duolingo, Inc. (DUOL - Free Report) currently has an Earnings ESP of +9.02% and a Zacks Rank #2.
Duolingo shares have declined 22.2% in the year-to-date period. DUOL is slated to report second-quarter 2026 results on Aug. 5.
Enpro Inc. (NPO - Free Report) currently has an Earnings ESP of +0.87% and a Zacks Rank #2.
NPO shares have appreciated 51.7% in the year-to-date period. NPO is scheduled to report second-quarter 2026 results on Aug. 4.
