10-Q · May 5, 2026
Cipher Digital Inc. reported Q1 2026 revenue of $34.8 million, which represents a decline from $49 million in Q1 2025, reflecting challenges in the bitcoin mining sector. The company experienced a net loss of $114.3…
Earnings analysis · 10-Q
CIFR earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Cipher's Q2 revenue was $24.837 million, down 43.0% year over year and 28.7% sequentially, while gross margin compressed to 39.4% and GAAP diluted EPS was negative $0.65. The operating loss widened to $78.536 million,…
Read full summary
Cipher's Q2 revenue was $24.837 million, down 43.0% year over year and 28.7% sequentially, while gross margin compressed to 39.4% and GAAP diluted EPS was negative $0.65. The operating loss widened to $78.536 million, and the net loss reached $267.529 million, including a $150.510 million warrant-liability fair-value loss and $23.509 million realized bitcoin-sale loss. The filing nonetheless shows substantial liquidity of $831.8 million and continued HPC expansion, including accelerated Black Pearl delivery, 700 MW under development, and a 900 MW Texas site option; these investments are accompanied by $6.016 billion of indebtedness and $797.049 million of first-half investing cash use.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.65
- Segment
- Bitcoin mining revenue: $24.837 million (all Q2 revenue; generated at the Odessa Facility)
What stood out
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Black Pearl capacity delivery accelerated
Black Pearl's amended HPC lease accelerated first-capacity delivery to July 31, 2026. Cipher is developing 700 MW of HPC data-center facilities across three sites for hyperscaler tenants.
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Liquidity increased through financing
Cash and cash equivalents were $831.8 million at June 30, 2026, after net financing inflows of $2.844 billion during the first six months of 2026.
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Pipeline expanded with 900 MW option
Cipher entered an option agreement on July 23, 2026 to acquire a 900 MW Texas site, expanding a portfolio stated at approximately 5.3 GW across 11 sites.
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Power-sale proceeds increased 67%
Power-sales proceeds rose to $2.295 million in Q2 2026 from $1.376 million in Q2 2025, as excess Odessa power was sold into ERCOT.
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Depreciation burden declined
Depreciation and amortization fell $24.721 million year over year to $19.365 million, reflecting prior mining-asset write-downs and sales that reduced assets in service.
What to watch
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Bitcoin-mining revenue contracted sharply
Q2 bitcoin-mining revenue fell 43.0% year over year to $24.837 million from $43.565 million, and declined 28.7% sequentially from implied Q1 revenue of $34.838 million. Management attributes the year-over-year reduction primarily to lower bitcoin prices.
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Margins deteriorated and operating loss widened
Gross margin compressed to 39.4% from 64.8% a year earlier, while operating loss widened to $78.536 million from $45.243 million. Compensation expense increased to $42.359 million from $15.659 million, principally from stock-based awards.
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New risk update: $6.016B indebtedness
The company reported $6.016 billion of consolidated indebtedness at June 30, 2026. It incurred $2.0 billion of 6.125% senior secured notes in February and $810.0 million of 6.000% senior secured notes in June, elevating debt-service, refinancing, covenant and potential dilution risk.
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New risk update: interconnection and EPC execution
The updated risk factors emphasize dependence on third parties for interconnection, substations, EPC work and critical equipment. These execution dependencies are material given construction of 700 MW of HPC capacity across three sites and could delay lease rent commencement.
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Capital spending and cash consumption remain high
Cash used in operations was $152.007 million and cash used in investing was $797.049 million in the first half of 2026, including a $746.0 million increase in property-and-equipment purchases for Black Pearl and Barber Lake. The buildout remains highly capital intensive.
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Bitcoin valuation and sale-loss exposure
Cipher held 646 bitcoin valued at $37.802 million at June 30, 2026; a 10% bitcoin-price decline would increase six-month net loss by an estimated $3.8 million. Q2 also included a $23.509 million realized loss on bitcoin sales.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management states that existing financial resources, projected data-center cash and bitcoin inflows, intended bitcoin sales, and ATM equity issuance capacity are expected to fund operating and capital requirements for at least 12 months.
Earlier filings 4
10-K · February 24, 2026
Cipher Mining (rebranded to Cipher Digital on February 20, 2026) is pivoting from pure‑play bitcoin mining to developing and operating hyperscale/HPC data centers, reporting a portfolio of 4.2 GW across 10 sites and a…
10-K · February 25, 2025
Cipher Mining describes a dual strategy: scale bitcoin-mining hashrate while diversifying into HPC/data‑center hosting. The filing discloses current capacity of ~327 MW (four sites) and a pipeline of ~2.8 GW across…
10-Q · October 31, 2024
Cipher Mining reported revenue of $24.102M for Q3 (three months ended September 30, 2024) and GAAP net loss of $86.754M (EPS $(0.26)), driven by large non-cash and operating charges. Cash from financing (proceeds from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.