Highlights

  • Second quarter net loss widened to $267.5 million, or $0.65 per share, including a $150.5 million warrant liability charge.
  • Quarterly revenue from bitcoin mining declined to $24.8 million from $43.6 million, while interest expense rose to $66.7 million.
  • Three HPC leases are signed, with Black Pearl capacity accelerated to July 31, 2026 and Barber Lake due in September.
  • Cash stood at $831.8 million, supported by $2.6 billion of net note proceeds raised in the first half of 2026.

Cipher Digital (NASDAQ:CIFR) shares were trading near their 52-week low at USD 9.22 on October 21, 2026, up 3.83%. The data center developer reported second quarter 2026 results in a Form 10-Q filed August 4, drew $2.6 billion of net proceeds from new notes during the first half, and amended its Black Pearl lease on July 24 to bring forward the first delivery of capacity.

Based in New York, Cipher Digital is a Delaware corporation that changed its name from Cipher Mining on February 20, 2026. It says it has evolved from a pure-play bitcoin miner into a vertically integrated developer and operator of industrial-scale data centers for high-performance computing, or HPC. Its portfolio includes about 5.3 gigawatts of capacity across 11 sites at varying stages of interconnection. It is developing 700 megawatts across three sites for hyperscaler tenants and operates about 207 megawatts of bitcoin mining at one Texas site.

Net Loss Widens on Financing and Warrant Costs

Revenue from bitcoin mining was $24.8 million, down from $43.6 million, which the company attributed to lower bitcoin prices partly offset by more bitcoin mined. Operating loss widened to $78.5 million from $45.2 million as compensation and benefits rose to $42.4 million, mostly stock-based pay, and general and administrative expense climbed to $16.5 million on legal fees tied to strategic initiatives. Depreciation fell to $19.4 million.

Below the operating line, interest expense was $66.7 million versus $1.1 million a year earlier, and interest income was $35.9 million. A non-cash charge of $150.5 million came from the change in fair value of warrants issued to Google. The net loss was $267.5 million, or $0.65 per share, against $45.8 million, or $0.12. For six months, the net loss was $381.8 million, or $0.94 per share.

The company sold 1,619 bitcoin for $123.4 million in the first half, recording $47.7 million of realized losses, and held 646 bitcoin worth $37.8 million at June 30.

Leases, Balance Sheet and Dilution

Three HPC leases are signed, and none had started producing revenue at June 30. Barber Lake, leased to Fluidstack for ten years with a Google backstop, is expected to be delivered in September 2026. Black Pearl, about 300 gross megawatts under a 15-year lease with an investment grade hyperscaler, begins phased delivery in 2026. A third Texas site, leased in March to another investment grade hyperscaler for 15 years, is due to begin delivery in 2027. On July 23, the company also took an option to acquire a 900 megawatt Texas site.

Cash and equivalents were $831.8 million and working capital was $2.75 billion, but stockholders' equity was $562.1 million against an accumulated deficit of $1.39 billion. Operating activities used $152.0 million in the first half, and investing outflows were $797.0 million. Debt principal totaled $6.02 billion, including $1.73 billion of 7.125% notes due 2030, $2.0 billion of 6.125% notes due 2031, $810 million of 6.0% notes due 2031, and $1.47 billion of convertible notes. No amounts were drawn on a new $200 million revolver.

Funding also comes from an at-the-market program, under which the company raised $129.2 million net from 5.5 million shares at an average $23.50. Up to $725.7 million of stock may be sold under the program. The Google warrants cover 24.2 million shares at $0.01, and about 204.7 million potentially dilutive shares were excluded from loss per share because they would be antidilutive.

Outlook and Liquidity Statement

The 10-Q offers no financial guidance. Management said its financial resources, expected cash and bitcoin inflows, and ability to sell bitcoin and stock would meet capital needs for at least twelve months, while noting a history of net losses and negative operating cash flow. Its stated priorities are completing the three leased projects, marketing its remaining pipeline of about 4.4 gigawatts to tenants, and adding sites.