Key Highlights

  • CIFR reported third-quarter 2026 Revenue of $26.7 million, compared with $71.7 million a year earlier.
  • Net income was $31.6 million, against a net loss of $3.3 million in the prior-year quarter.
  • HPC leasing revenue reached $5.9 million, the first such revenue in company history.
  • Cash and cash equivalents stood at $656.0 million on Sep 30, 2026.
  • Contracted revenue across three HPC campuses totals about $16.6 billion, according to management.

Warrant Gain Turns an Operating Loss Into Net Income

Cipher Digital (NASDAQ:CIFR) reported results for the third quarter ended Sep 30, 2026 on Nov 2, 2026. Total revenue was $26.7 million, down from $71.7 million in the same quarter of 2025. Net Income came to $31.6 million, compared with a net loss of $3.3 million a year earlier.

The profit did not come from operations. The company posted an operating loss of $71.9 million, versus $37.6 million in the prior-year period. A non-cash gain of $127.2 million on the change in Fair Value of a Warrant liability, together with $32.7 million of interest income, more than offset $59.0 million of interest expense.

Basic earnings per share were $0.08, while diluted results showed a loss of $0.22 per share, because the warrant gain is removed from the diluted calculation.

Bitcoin Mining Shrinks as Black Pearl Starts Paying Rent

Cipher Digital builds and operates industrial-scale data centers for high-performance computing, known as HPC, and still mines bitcoin at one Texas site. Bitcoin Mining revenue fell to $20.8 million from $71.7 million. The company ended mining at its Black Pearl campus in February 2026 as it converted the site to HPC use.

HPC leasing revenue was $5.9 million, including $5.2 million of fixed Lease payments, after the first Black Pearl phase began in August 2026. Management said capacity was delivered ahead of schedule at the tenant's request, with 18 MW of critical IT capacity delivered so far.

Compensation and benefits rose to $38.6 million from $14.4 million, while Depreciation and amortization fell to $18.8 million from $59.5 million.

Barber Lake Amendment Lifts Contracted Revenue to $9.1 Billion

In September 2026, the company amended the Barber Lake lease to a 20-year term. Management said contracted revenue at the site rose to about $9.1 billion, adding roughly $5.2 billion of rent. Data halls are due between the fourth quarter of 2026 and the first quarter of 2027.

The company agreed to absorb the first $359.3 million of costs above the original budget, with the tenant reimbursing half of costs beyond that level over the lease term. Management said average Yield on cost is restored to about 15%.

Across three campuses totaling 700 gross MW, management cited about $16.6 billion of contracted revenue and a weighted average lease term of 17.3 years.

Cash, Convertible Notes and the Next Delivery Milestones

Cash used in Operating Activities was $283.2 million for the nine months. Cash and cash equivalents were $656.0 million at Sep 30, 2026, with an accumulated Deficit of $1,353.9 million.

After quarter end, on Oct 16, 2026, the company issued $850.0 million of Zero-Coupon Convertible notes due 2032 and exchanged about $165.9 million of older convertible notes for roughly 40.7 million shares. Next to watch are the Barber Lake data hall deliveries through the first quarter of 2027, further Black Pearl phases, and final Texas load classification for the 1 GW Colchis site, expected in December.