Cipher Digital shares plunge after Texas governor-elect calls data‑center moratorium
Cipher Digital reported Q3 2026 revenue of $26.7 million, a net GAAP profit of $31.6 million and an operating loss of $71.9 million. The election of Democrat Gina Hinojosa as Texas governor, who pledged a moratorium on new data‑center construction, sparked regulatory concerns for the company’s Texas‑heavy pipeline. Analysts at Cantor Fitzgerald and Keefe, Bruyette & Woods downgraded the stock and cut price targets, sending the shares sharply lower.
Why it matters
The downgrades and reduced price targets reflect heightened risk to Cipher’s Texas projects, which could delay future lease revenue and pressure the stock further. The policy shift also adds uncertainty to the company’s growth outlook, potentially affecting investors’ valuation of its pipeline.
Key facts
- 1Q3 2026 revenue was $26.7 million. investing.com
- 2GAAP net income for the quarter was $31.6 million. investing.com
- 3Operating loss was $71.9 million. investing.com
- 4Long‑term debt grew to $5.4 billion. investing.com
- 5Democrat Gina Hinojosa won the Texas gubernatorial election. crypto.news
Open questions
- Material 1 reports a pre‑market decline of 13.4% to $7.03, while material 2 reports a decline of about 19% to $6.60; the percentage drop figures conflict.
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.