Cipher Digital Q3 Financial Report: Mining Output of Approximately 296 Bitcoins, Mining Revenue Down 70.9% Year-on-Year

Data center developer and Bitcoin mining company Cipher Digital (Nasdaq: CIFR) released its Q3 2026 financial report, reporting total revenue of $26.7 million, a decrease of 62.8% year-on-year, primarily due to a significant drop in Bitcoin mining revenue. The net profit was $31.6 million, compared to a net loss of $3.28 million in the same period last year, mainly benefiting from a non-cash gain of $127 million from the fair value change of warrant liabilities. Adjusted EBITDA was negative $9.96 million, down from $40.79 million in the same period last year. As of September 30, cash and cash equivalents stood at $656 million.

By business segment, Bitcoin mining revenue was $20.85 million, down 70.9% year-on-year and down 16.1% quarter-on-quarter; HPC leasing business recognized revenue for the first time, amounting to $5.85 million. In terms of mining operations, Cipher mined approximately 296 Bitcoins at the Odessa mine in Q3, with a total hash rate of about 11.6 EH/s, total site capacity of 207 MW, and electricity costs of approximately 2.8 cents per kilowatt-hour. As of September 30, the value of held Bitcoins was $25.94 million, significantly reduced from $125 million at the end of 2025; the unrealized fair value gain on Bitcoin for the quarter was $12.39 million (non-cash). The company stated that it is actively negotiating the transformation of the Odessa mine to HPC.

In the HPC business, the park delivered its first batch of capacity in August and has currently delivered 18 MW of critical IT capacity to tenants. The lease with a leading AI laboratory has been extended to 20 years, increasing the total contract revenue for the park to approximately $9.1 billion, with an additional $5.2 billion. The first batch of capacity is expected to be delivered in Q4 2026. To date, Cipher has signed HPC total capacity of 700 MW, with total contract revenue of approximately $16.6 billion. Additionally, the company completed the issuance of $850 million zero-coupon convertible senior notes due in 2032 this quarter, while converting approximately $166 million of convertible notes due in 2030 into equity. The acquisition of a 70 MW Texas park, expected to be energized in 2029, is underway; the park has received conditional base load classification from ERCOT, the Texas grid operator, for 1 GW, and the company has also begun construction of a natural gas pipeline that can support up to 2.5 GW of on-site power generation. The total scale of the developed pipeline is approximately 5.9 GW.