Cipher Digital has recently released its 10-Q report. Cipher Digital Inc., together with its subsidiaries, develops and operates industrial-scale data centers in the United States for bitcoin mining and high-performance compute hosting. It is developing HPC facilities at several sites for hyperscaler tenants, operates one bitcoin mining data center in Texas, and maintains a broader site pipeline. The company was founded in 2021 and is headquartered in New York, New York.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
For the three months ended March 31, 2026, Cipher Digital reported revenue of $34.8 million, down from $49.0 million a year earlier. The company said the decline was mainly due to a lower average bitcoin price, partly offset by more bitcoin mined.
Cost of revenue rose to $17.7 million from $14.9 million, with the company pointing to higher power costs at the Black Pearl Facility, which began mining in July 2025. Compensation and benefits increased to $35.0 million from $14.3 million, driven by higher headcount and a higher valuation on performance-based stock compensation.
General and administrative expense increased to $11.7 million from $9.0 million, mainly because of higher legal fees tied to strategic initiatives, including lease negotiations and financing transactions. Depreciation and amortization fell to $19.0 million from $43.5 million.
The company recorded a change in fair value of power purchase agreement of a $28.2 million loss, compared with a $7.3 million gain in the prior-year quarter. Power sales were $2.1 million, up from $1.0 million. Equity in losses of equity investees narrowed to $1.6 million from $5.3 million.
Cipher Digital reported unrealized gains on bitcoin of $3.8 million, compared with unrealized losses of $20.2 million a year earlier. Realized losses on bitcoin sales were $24.2 million, compared with realized gains of $12.2 million in the prior-year quarter. Other operating losses were $17.8 million, versus $0.5 million.
Total costs and operating expenses were $149.4 million, compared with $87.0 million. That produced an operating loss of $114.6 million, versus $38.1 million a year earlier. Interest income increased to $31.6 million from $0.2 million, while interest expense rose to $59.2 million from $0.8 million. The company also recorded a $43.6 million gain from the change in fair value of warrant liability. Net loss was $114.3 million, compared with $39.0 million.
At March 31, 2026, bitcoin inventory stood at 1,116 bitcoin, valued at $76.2 million, down from 1,433 bitcoin valued at $125.4 million at the start of the quarter. During the period, the company received 451 bitcoin from mining activities and 34 bitcoin from equity investees, sold 802 bitcoin for proceeds of $66.8 million, and recorded $24.2 million of realized losses on those sales. It also recorded $3.8 million of unrealized gains on bitcoin during the quarter.
Cipher Digital said its portfolio consists of about 4.2 GW across 10 sites at various stages of interconnection. It is developing 700 MW of HPC data center facilities across three sites for hyperscaler tenants and operates about 207 MW at one bitcoin mining data center in Texas. It also said it maintains a pipeline of about 3.3 GW across six sites in Texas and one site in Ohio.
On March 25, 2026, the company executed its third data center campus lease, a 15-year agreement with an investment-grade hyperscale tenant, under which it will develop and deliver a new HPC data center at an existing site. On the same date, it entered into a revolving credit facility with up to $200 million of committed capacity and a $50 million accordion option, maturing in March 2030 and priced at SOFR plus 1.25% to 1.75%, subject to step-down pricing based on total debt to market capitalization. As a result of these announcements, the company's shares have moved 9.53% on the market, and are now trading at a price of $19.595. Check out the company's full 10-Q submission here.
