Cipher (CIFR.US) is experiencing growing pains during its transformation: Q2 mining revenue plummeted by 43%, and losses have widened, but the first AI data center was delivered ahead of schedule and is generating rental income.

On Tuesday, before the U.S. stock market opened, Cipher Digital (CIFR.US) announced its financial report for the second quarter of 2026 and revealed its latest operational situation. The data showed that the company had a net loss of $267.5 million in Q2, compared to a net loss of $45.78 million in the same period last year; the loss per share was $0.65, while the market had previously expected a loss of $0.25 per share; the adjusted EBITDA loss was approximately $30 million; and the revenue from Bitcoin mining was $24.8 million, a year-on-year decline of 43.0%, falling short of market expectations. Cipher, formerly known as Cipher Mining, is a Bitcoin mining company. Amid the rising wave of AI data center construction, the company is actively transforming into a high-performance computing (HPC) infrastructure service provider. Before entering the second quarter, the company had three long-term lease agreements for campuses and a contract capacity of 700 megawatts for HPC, but as rental income had not yet made a substantial impact, combined with rising construction costs, the company's recent performance still relied on its mining business. The construction progress of the Barber Lake, Black Pearl, and Stingray data centers is the focus of market attention. Cipher stated that the construction of the Barber Lake data center is progressing, with tenants having begun to effectively utilize the facility, including partial occupancy and deployment of network racks; the remaining data rooms in the first phase of Black Pearl are undergoing electromechanical decoration, and the concrete foundation, steel structure, and underground electrical engineering for the second phase have also begun; the land preparation, leveling, foundation preparation, and underground electrical engineering for the Stingray data center are all underway. Notably, Cipher disclosed on Tuesday that it had amended the leasing agreement for the Black Pearl campus with a hyperscale tenant, accelerating the initial capacity development at the tenant's request. According to the revised terms, Cipher began delivering data center capacity in early August, two months earlier than originally planned. We are proud to announce that our first high-performance computing data center has been delivered ahead of schedule and has started generating rental income, CEO Tyler Page stated on Tuesday. This accelerated delivery demonstrates that even in a challenging environment, we can execute projects at scale, quickly, and without compromise. As we continue to acquire new sites and sign new agreements, our rigorous execution is what truly sets us apart. In addition to breakthroughs in project delivery, Cipher announced on Tuesday that it has secured the development option for a new parcel of land named Apollo in Texas. This site is located about 25 miles east of San Antonio, Texas, spans approximately 288 acres, and has a maximum installed capacity of up to 900 megawatts. The site has entered the load review process of the Texas electric grid, ERCOT, and is flat, making it suitable for large-scale data center construction. The financing side has also made key progress. The company completed another bond issuance in the second quarter. This issuance provided ample funding for its Stingray data center development. As of June 30, 2026, the company's cash and cash equivalents increased to $831.8 million. Total assets grew from $4.3 billion at the end of 2025 to $7.5 billion. As of the time of publication, Cipher's pre-market shares were down 11.42%.