Cipher Digital Q3: First HPC Lease Revenue, $31.6M Net Income on Warrant Gain

summarizeSummary

Cipher posted Q3 revenue of $26.7M, including its first $5.9M of HPC lease revenue, and $31.6M of net income that came almost entirely from a non-cash $127.2M warrant remeasurement gain. Adjusted EBITDA was negative $10.0M.

check_boxKey Events · Earnings and Guidance · CIFR

• First HPC Lease Revenue Recognized

  Q3 total revenue was $26.7M, split between $20.8M of bitcoin mining and $5.9M of HPC leasing — the first HPC lease revenue the company has booked.

• Net Income Is a Non-Cash Warrant Gain

  Net income of $31.6M was driven by a $127.2M non-cash gain on warrant liability remeasurement; Adjusted EBITDA was negative $10.0M. This is a mark-to-market accounting effect, not cash earnings or new dilution.

• Bitcoin Mining Revenue Halved

  Mining revenue fell to $20.8M from $71.7M in Q3 2025, with roughly 296 BTC mined at Odessa in the quarter.

• ERCOT Conditional 1 GW Classification

  Received a conditional base load classification for 1 GW at Colchis plus conditional studied load classifications for 1.6 GW; final Batch Zero classifications are expected in December 2026.

auto_awesomeAnalysis · CIFR · Crypto Assets

The quarter delivers Cipher's first real HPC leasing revenue — $5.9M of the $26.7M total — but the headline profit is accounting, not operations. A $127.2M non-cash gain from remeasuring the warrant liability drove $31.6M of net income, while Adjusted EBITDA was negative $10.0M. Bitcoin mining revenue fell to $20.8M from $71.7M a year ago, so the HPC pivot is now the growth story. The Barber Lake lease extension to 20 years and $9.1B contracted revenue were already announced on 2026-09-25; what is new is the operating proof point plus ERCOT's conditional 1 GW base load classification at Colchis, with final classifications due in December 2026.