Cipher Posts $31.6M Q3 Net Income as Revenue Falls 63% YoY

November 3 — According to CoinDesk, bitcoin miner turned data center developer Cipher Digital reported third-quarter net income of $31.6 million despite a 63% year-over-year decline in revenue. Revenue fell to $26.7 million from $71.7 million in the same period last year, with bitcoin mining contributing $20.8 million, down 71%, as Cipher shifted its hashrate from mining to leasing data centers to AI companies. In the quarter, Cipher generated revenue from that business for the first time, with the first phase of its Black Pearl data center in Texas coming online in August and generating $5.9 million in revenue.

Cipher reported an operating loss of $71.9 million, higher than $37.6 million a year earlier; adjusted EBITDA fell from positive $40.8 million to negative $10 million. Net income mainly came from a $127.2 million non-cash accounting gain related to Google warrants, an adjustment that does not represent cash actually received by Cipher. Cipher recently extended the lease on its Barber Lake data center to 20 years, bringing contracted revenue at that site to approximately $9.1 billion.