Cipher (CIFR.US) transformation pains revealed: Q2 mining revenue plummeted by 43%, losses expanded, but the first AI data center was delivered and leased ahead of schedule

The Zhitong Finance App learned that before the US stock market on Tuesday, Cipher Digital (CIFR.US) announced financial results for the second quarter of 2026 and disclosed the latest operating conditions. According to the data, the company had a net loss of 267.5 million US dollars in Q2, a net loss of 45.78 million US dollars; loss per share of 0.65 US dollars; the market previously expected a loss of 0.25 US dollars per share; adjusted EBITDA loss was about 30 million US dollars; and Bitcoin mining revenue was 24.8 million US dollars, down 43.0% year on year, falling short of market expectations.

Cipher, formerly Cipher Mining, is a Bitcoin mining company. With the rise 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 leases for the park and 700 megawatts of HPC contract capacity, but since rental revenue had not had a substantial impact, the combined construction support continued to rise, and the company's recent performance still depended on the mining business.

The progress of Barber Lake, Black Pearl, and Stingray data center construction is the focus of market attention.

Cipher said that construction of the Barber Lake data center continues to advance, and tenants have begun to effectively use the facility, including the occupancy of some buildings and the deployment of network racks; the remaining data computer room of Black Pearl Phase I is undergoing mechanical and electrical construction, and phase II concrete foundation, steel structure and underground electrical engineering have also begun; earthwork, site leveling, foundation preparation, and underground electrical engineering for the Stingray Data Center have all begun.

Of particular note, Cipher revealed on Tuesday that it has revised the Black Pearl Park lease agreement with a hyperscale tenant, speeding up the development of the initial capacity in response to the tenant's request. According to the revised terms, Cipher began delivering data center capacity in early August, two months ahead of schedule.

“We are proud to announce that our first high-performance computing data center has been delivered ahead of schedule and that rent collection has begun,” CEO Taylor Page said on Tuesday. “This accelerated delivery is proof that we can execute projects at scale, quickly, and without compromise, even in challenging environments. As we continue to acquire new sites and sign new agreements, our rigorous execution is what really sets us apart.”

In addition to a breakthrough in project delivery, Cipher announced on Tuesday that it has won the development option of Apollo, a new plot in Texas. Located 25 miles east of San Antonio, Texas, the site covers approximately 288 acres and has an installed capacity of up to 900 megawatts. The plot has entered the load review process of the Texas Power Grid ERCOT, and the terrain is flat and suitable for the construction of large-scale data centers.

Key developments have also been made on the financing side. The company completed another bond issue in the second quarter. This offering provided sufficient funding for its Stingray data center development.

As of June 30, 2026, the company's cash and cash equivalents increased to US$831.8 million. Total assets grew from $4.3 billion at the end of 2025 to $7.5 billion.

As of press time, Cipher was down 11.42% in the premarket.