$CIFR earnings report

Cipher's third quarter marked the start of reported HPC leasing activity. HPC leasing revenue was $5,852 (in thousands), which management linked to rent commencement at Black Pearl. Bitcoin mining revenue was $20,849 (in thousands), and total revenue was $26,701 (in thousands), compared with $71,707 (in thousands) in the prior-year quarter. The company is positioning the new leasing revenue stream around phased capacity deliveries at Black Pearl and Barber Lake through year-end.

Profitability remained under pressure during the transition and development buildout. Operating loss was $(71,915) (in thousands), versus $(37,617) (in thousands) a year earlier, while Adjusted EBITDA was $(9,963) (in thousands), versus $40,790 (in thousands). Compensation and benefits were $(38,555) (in thousands), general and administrative expense was $(26,359) (in thousands), and interest expense was $(58,994) (in thousands). GAAP net income of $31,596 (in thousands) included a $127,180 (in thousands) change in fair value of warrant liability.

The balance sheet reflects substantial project investment and financing activity. Property and equipment, net was $3,899,880 (in thousands) at September 30, 2026, compared with $633,417 (in thousands) at December 31, 2025. Long-term borrowings, net were $5,447,174 (in thousands), and the company completed an $850 million offering of 0.000% convertible senior notes due 2032. Cipher also equitized approximately $165.9 million of its 1.750% convertible notes due 2030, retiring more than 90% of those notes.

The central operating milestone is the amended Barber Lake lease, which extends the term to 20 years and raises total contracted revenue at the site to approximately $9.1 billion, including approximately $5.2 billion of incremental rent. Cipher also reported a development pipeline of approximately 5.9 GW, including a conditional base load classification for 1 GW at Colchis, conditional studied load classifications for 1.6 GW with PCLR designations, and lateral pipeline development intended to support up to 2.5 GW of on-site generation.

No formal financial guidance was issued. The disclosed outlook centers on execution: additional data halls at Black Pearl and Barber Lake are scheduled to come online through year-end, Stingray shell construction is expected to be completed in the fourth quarter, 270 MW is available in 2027, and the 70 MW Horizon site is expected to energize in 2029. The key reported tension is between the contracted HPC expansion and the current negative Adjusted EBITDA, widening operating loss, and increased borrowing base.

Cipher reported Q2 2026 revenue of $25 million and Adjusted EBITDA of negative $30 million. The supplied filing excerpt does not include comparable-period figures, GAAP income statement detail, or margins, so the reported financial trend and the drivers of the negative Adjusted EBITDA cannot be quantified from this document.

The principal operating development was an amendment to the Black Pearl campus lease that accelerated the timeline for initial capacity at the hyperscale tenant's request. Cipher began delivering capacity at the beginning of August, two months ahead of the original schedule, and rent has commenced. Black Pearl construction continued, with Phase I data halls in MEP fit-out and Phase II foundations, building steel and underground electrical work in progress.

Development activity also extended across the other sites. Barber Lake was progressing toward completion, while its tenant had commenced beneficial use, including partial building occupancy and deployment of network racks. Stingray construction was described as on schedule, and the completed bond offering fully funded the project through substantial completion while reimbursing Cipher for $56.7 million of previously funded project expenditures.

Cipher added future development optionality by acquiring an option for Apollo, a site with up to 900 MW near San Antonio, Texas. The site has been submitted as a studied load in ERCOT's Batch Zero process. Management expects significant additional progress in the third quarter, but the release provides no quantitative financial outlook. Investors will need subsequent disclosures to assess construction conversion into revenue, the path of Adjusted EBITDA, project funding, and the financial impact of the Black Pearl rent commencement.