Crypto desk
Cipher Digital booked a $31.6 million Q3 revenue on a $127.2 million noncash Google warrant achieve as income fell 63% and its AI knowledge middle pivot started.
Printed 5 Nov 2026, 00:50 UTC
Cipher Digital reported a $31.6 million third-quarter web revenue on November 2, a revenue that rests on a $127.2 million noncash warrant achieve from Google somewhat than its shrinking bitcoin mining enterprise.
Key takeaways
- Q3 income fell 63% to $26.7 million, with bitcoin mining income down 71% to $20.8 million, per the SEC submitting.
- The $127.2 million achieve is a paper revaluation of warrants Google holds in trade for guaranteeing a part of Fluidstack’s lease.
- Cipher’s enterprise replace reveals a 22-cent quarterly loss per share as soon as these shares and different dilutive devices are counted.
- The Barber Lake lease now runs 20 years and carries about $9.1 billion in contracted income.
Cipher filed its Q3 2026 earnings launch with the SEC exhibiting income of $26.7 million, down from $71.7 million a yr earlier. Bitcoin mining contributed $20.8 million of that, a 71% drop, as the corporate moved computing capability away from mining and towards leasing knowledge facilities to synthetic intelligence firms. Its working loss widened to $71.9 million from $37.6 million.
The decline is generally deliberate somewhat than a market verdict on mining. Cipher stopped mining bitcoin at its Black Pearl facility in Texas in February to organize it for a brand new tenant, and that income loss reveals up within the quarter. Nonetheless, the timing compounds the stress: bitcoin traded within the mid-$70,000s by Q3, thinning margins for miners who stayed within the enterprise. For readers monitoring what bitcoin mining includes at at the moment’s costs, the quarter reveals the economics tightening even earlier than a miner provides capability away.
The revenue itself is accounting, not money. It displays the next honest worth positioned on the warrants Cipher issued to Google, which took them as a part of a deal underneath which it ensures a few of the lease owed by Fluidstack, an AI infrastructure firm. That adjustment just isn’t cash Cipher obtained, and mark-to-market swings of this dimension can run the opposite manner in later quarters. Cipher’s enterprise replace filed with the SEC provides a special per-share image: as soon as the shares behind these warrants and its different dilutive devices are counted, the corporate data a 22-cent loss for the quarter.
The brand new enterprise is actual however small to date. Cipher earned its first knowledge middle income within the quarter, amassing $5.9 million after the preliminary part of Black Pearl started operations in August. It has additionally stretched the Barber Lake knowledge middle lease to a 20-year time period, a website that now carries about $9.1 billion in contracted income, the work the pivot is constructed to fill. Adjusted EBITDA fell to destructive $10 million from a constructive $40.8 million a yr earlier, the closest measure to how the operations truly ran within the quarter.
