$CIFR · Cipher Digital Inc.
Cipher Digital filed its Q3 FY2026 10-Q, reporting revenue of $26.7M, down 62.8% YoY from $71.7M. GAAP diluted EPS was $(0.22), while basic EPS was $0.08 — the gap driven by a $127.2M non-cash gain on Google warrant fair value revaluation. Operating loss was $71.9M with an operating margin of -269.3%. The balance sheet shows $656M in cash and $3.9B in property and equipment as the company pivots toward HPC data center construction.
- Revenue fell 62.8% YoY to $26.7M, driven by bitcoin mining revenue dropping from $71.7M to $20.8M.
- GAAP diluted EPS was $(0.22); basic EPS was $0.08, with the dilution gap driven by a $127.2M gain on Google warrant fair value.
- Operating loss widened to $71.9M from $37.6M YoY; operating margin was -269.3%.
- Interest expense surged to $59.0M from $1.3M YoY, reflecting the company's heavy debt load.
- Total assets ballooned to $7.67B from $4.29B at year-end 2025, driven by property and equipment growth to $3.9B.
CIFR is down 7.13% in the regular session to $6.77. The market appears to be focusing on the 62.8% revenue collapse and the unsustainable nature of the net income figure, which relied entirely on a non-cash warrant revaluation gain.
A 62.8% revenue collapse paired with a headline net-income figure that flips positive only because of a non-cash warrant gain is a classic red flag for investors scanning earnings without reading the footnotes.
Cipher's pivot from pure-play bitcoin mining to HPC data centers mirrors peers like CoreWeave and Iris Energy, but the 62.8% mining revenue drop shows the transition is far from complete. The $3.9B property and equipment base signals massive capex deployment ahead of HPC revenue materialization.
The 10-Q highlights severe risks around HPC data center construction: failure to complete on time or within cost estimates could materially impair the ability to service $184.9M in nine-month interest expense. Power procurement costs, ERCOT grid interconnection risks, and tenant concentration in the nascent HPC business add further pressure.