Cipher Digital (CIFR) shares climbed more than 6% on Tuesday, even as the company posted quarterly earnings that fell short of Wall Street forecasts and outlined a strategic shift away from Bitcoin mining toward high-performance computing (HPC) data centers.
Q4 Results: Revenue Falls Short, Net Loss Widens
The company, formerly known as Cipher Mining, reported fourth-quarter revenue of $60 million, below the analyst consensus of $84.4 million. Adjusted earnings per share came in at a loss of $0.14, wider than the expected loss of $0.06. Cipher incurred an adjusted net loss of $55 million for the quarter. Prior to the earnings release, short interest in the stock stood at 60.9 million shares, representing 19% of the float.
HPC Pivot: 600 MW of Leases Signed with AWS, Google
Management called 2025 a transformative year, marking the company's exit from Bitcoin mining as it pivots to long-term HPC infrastructure. During the quarter, Cipher secured a total of 600 megawatts of contracted capacity, including a 15-year, 300 MW lease with Amazon Web Services and a 10-year, 300 MW lease with Fluidstack and Google.
$3.73 Billion Raised for Data Center Buildout
To fund the transition, Cipher raised $3.73 billion through three senior secured bond offerings, financing construction of its Barber Lake and Black Pearl data center projects, both on schedule. The company also divested its 49% stakes in three mining joint ventures for about $40 million in stock, simplifying its structure as it focuses on a data-center-centric business model.
Analyst: Exiting Mining JVs a Positive Step
KBW analyst Stephen Glagola noted that Cipher's exit from legacy mining joint ventures, which contributed minimal EBITDA, is a positive step underscoring management's pivot to an HPC-focused colocation strategy. However, he added that some investors had positioned for a new HPC lease announcement alongside the earnings, particularly after Cipher's prior AWS update in Q3 and ongoing marketing of its Stingray and Reveille sites.