Cipher Digital (CIFR) Q2 2026 earnings summary

Executive summary

• Delivered first capacity at Black Pearl data center ahead of schedule, with rent commencing in August 2026, strengthening credibility and future financing prospects.

• Secured an option for a new 900 MW Apollo site near San Antonio, Texas, and a 200 MW expansion at Stingray, expanding the pipeline to 4.4 GW and total portfolio to 5.3 GW across 11 sites.

• Completed $810 million Stingray bond offering at a 6% coupon, fully funding development and reimbursing prior project expenditures.

• Robust demand environment with improving lease terms, high rental rates, and strong tenant interest, especially for sites outside the ERCOT batch process.

• Continued investment in team expertise, including key hires from ERCOT and Google to support execution and growth.

Financial highlights

• Q2 2026 revenue was $24.8 million to $25 million, down from $43.6 million in Q2 2025, reflecting the transition from bitcoin mining to contracted data center revenue.

• Reported GAAP net loss of $267.5 million ($0.65 per diluted share) for Q2 2026, up from $45.8 million–$114 million loss in prior periods, mainly due to non-cash warrant remeasurement and lower bitcoin prices.

• Adjusted EBITDA for Q2 2026 was negative $30 million to negative $216.9 million, compared to positive $32.3 million to negative $45.8 million in Q2 2025.

• Cash and cash equivalents stood at $831.8 million to $832 million as of June 30, 2026.

• Compensation and benefits rose significantly due to higher stock-based compensation and payroll taxes.

Outlook and guidance

• Expecting stable, visible, and contracted net operating income of ~$793 million annually from October 2026 through September 2036 from three executed data center leases.

• Pipeline grid capacity expected to reach 5.3 GW by 2030+ across 11 sites.

• No additional equity required for near-term commitments based on current forecasts and $870 million liquidity.

• Ongoing discussions for new leases at Odessa, Reveille, and Ulysses, with potential for first megawatts online in 2027.

• Management expects to meet operating and capital requirements for at least 12 months, supported by financial resources and project-level financing.