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Cipher Digital Q3 revenue drops as bitcoin mining declines

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue Bitcoin Mining

$20.85 mln

Q3 Loss Per Share

$0.22

Q3 Net Income

$31.60 mln

Q3 Basic EPS

$0.08

Q3 Operating Loss

$71.92 mln

Q3 Pretax Profit

$31.54 mln


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


Reuters Recommended Reads

  • Oct 30 - Alliant targets 1 GW of new data-center contracts in six months as power demand surges

  • Oct 30 - Wholesale market sees openings in data centers and AI as property softens, casualty stabilizes


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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