NEW YORK, August 4, 2026, 12:15 EDT
- Cipher was down 10.2% at $21.69 near midday, after starting the session at $20.20.
- Mining revenue for the second quarter declined 29% from the prior quarter. Adjusted EBITDA increased to negative $30.0 million.
- Black Pearl rental commenced two months ahead of schedule, though expected net operating income is still predominantly concentrated in 2027.
Cipher Digital stock dropped 10.2% in early U.S. trading. The shares rebounded 7.4% from their session low but continued to underperform their rivals.
The action was not linked to a widespread Bitcoin selloff. Bitcoin advanced 0.4%, with IREN Ltd. NASDAQ:IREN up 4.2% and TeraWulf Inc. NASDAQ:WULF climbing 1.4%.
Market update as of approximately 12:00 EDT. Percentage changes are based on previous closing values.
| Asset | Price | Day move | Intraday range |
|---|---|---|---|
| Cipher Digital | $21.69 | -10.2% | $20.20-$24.81 |
| IREN | $41.43 | +4.2% | $39.02-$42.21 |
| TeraWulf | $19.10 | +1.4% | $18.59-$19.58 |
| Bitcoin | $63,977 | +0.4% | $63,293-$64,138 |
The split is significant. Investors are valuing a shift from Bitcoin mining towards revenue from lease-backed computing.
Cipher’s second-quarter income statement continues to show figures from its legacy operations. Revenue was generated only through Bitcoin mining, as the primary high-performance computing rental had not yet significantly increased.
The following displays reported results as well as calculated mining margins. Adjusted EBITDA is presented as a non-GAAP metric.
| $ millions, except EPS | Q2 2026 | Q1 2026 | Q2 2025 |
|---|---|---|---|
| Revenue from Bitcoin mining | $24.8 | $34.8 | $43.6 |
| Gross profit from mining | $9.8 | $17.1 | $28.2 |
| Gross margin from mining | 39.4% | 49.2% | 64.8% |
| EBITDA, adjusted | $(30.0) | $(48.2) | $32.3 |
| Loss, net | $(267.5) | $(114.3) | $(45.8) |
| Earnings per diluted share | $(0.65) | $(0.28) | $(0.12) |
*Reported mining revenue minus cost of revenue.
The GAAP loss of $267.5 million factored in a noncash warrant remeasurement of $150.5 million. Adjusted EBITDA saw an $18.2 million quarter-on-quarter improvement but remained in negative territory.
CEO Tyler Page said, “We are proud to have delivered our first HPC data center capacity ahead of schedule and announce that rent has commenced at the site.” markets.businessinsider.com
This is the report’s main positive takeaway.
Black Pearl marks just the beginning. The agreement covers 700 gross megawatts distributed over three campuses. Stated capacities are gross; projected timelines reflect company expectations.
| Campus | Contracted capacity | Delivery and rent milestone | Equipment secured |
|---|---|---|---|
| Black Pearl | 300 MW | First delivery was achieved early, with rent beginning in August | Roughly 96% |
| Barber Lake | 300 MW | First delivery set for September; rent scheduled to begin in October | 100% |
| Stingray | 100 MW | Projected delivery in H1 2027 | Approximately 75% |
With its timing, 2026 serves as a transitional year. Cipher forecasts net operating income, or NOI, at $97 million for this year. The company expects that figure to climb to $686 million in 2027 and $727 million in 2028.
This is the perspective for investors. The most recent equity valuation puts the average contracted NOI at a 7.7% straightforward future NOI yield based on enterprise value.
Cipher’s market capitalization, net debt for June, and management NOI estimates were utilized for these calculations. These figures are intended as screening metrics and do not represent company guidance.
| Transition measure | Value |
|---|---|
| Equity market capitalization | $8.81 billion |
| Net debt as of June 30 | $1.46 billion |
| Basic enterprise value | $10.26 billion |
| Estimated NOI for 2027 | $686 million |
| NOI annual average, Oct 2026-Sept 2036 | $793 million |
| 2027 NOI as percentage of enterprise value | 6.7% |
| Average NOI as percentage of enterprise value | 7.7% |
| Total debt to average NOI | 7.6 times |
The average NOI forecast of $793 million represents a figure eight times greater than yearly Q2 mining revenue. Although these figures are not directly comparable, the disparity highlights how current mining performance provides limited insight into the company’s intended operations.
The anticipated earnings underpin a substantial capital structure. Cipher disclosed $6.02 billion in debt, $832 million in corporate cash, and $3.73 billion in restricted cash allocated for projects. Interest expense for the second quarter totaled $66.7 million.
Cipher secured an option on Apollo, a planned 900-MW facility outside San Antonio. The company has entered the project in ERCOT’s Batch Zero review, meaning its capacity and schedule are still subject to change.
Risks: Texas Governor Greg Abbott instructed regulators to review data-center initiatives before these proceed in the grid approval process. Following this, ERCOT halted its Batch Zero transmission study, introducing new timing uncertainties for Apollo as well as most of Cipher’s 4.4-GW pipeline, in addition to ongoing construction and leverage risks.
The recovery from $20.20 eased the initial reaction but did not reverse it. Full Black Pearl delivery, Barber Lake rent, and the ERCOT review are now more significant factors than quarterly mining output.
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