Cipher Digital Q3 revenue drops as bitcoin mining declines

Overview

• US data center operator's Q3 revenue fell yr/yr as bitcoin mining revenue declined

• Company recognized first HPC lease revenue, marking shift in business strategy

• Net profit posted for Q3, driven by non-operating gains; adjusted EBITDA was negative

Outlook

• Company expanded Barber Lake lease to 20 years, raising contracted revenue to $9.1 bln

• Cipher expects additional capacity at Black Pearl and other campuses to come online by year-end

• Company advancing development pipeline, with 270 MW capacity available in 2027 and Horizon site energization in 2029

Result Drivers

• HPC LEASE REVENUE - Co recognized first HPC lease revenue following rent commencement at Black Pearl

• BARBER LAKE LEASE EXPANSION - Co expanded Barber Lake lease to 20 years, increasing contracted revenue to $9.1 bln

• DATA CENTER PIPELINE - Co began development of lateral pipelines to facilitate up to 2.5 GW of on-site generation for data center expansion

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

• Wall Street's median 12-month price target for Cipher Digital Inc is $27.50, about 277.2% above its October 30 closing price of $7.29

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)