For questions about this article or underlying research, email [email protected]. Cipher Digital (CIFR) stock has lost 63.7% in three months, while the S&P 500 gained 3.1%. The company is transitioning from a bitcoin miner into a builder of data centers leased to large technology companies.
For questions about this article or underlying research, email [email protected].
Cipher Digital (CIFR) stock has lost 63.7% in three months, while the S&P 500 gained 3.1%.
The company is transitioning from a bitcoin miner into a builder of data centers leased to large technology companies.
Cipher Digital (CIFR) stock has lost 63.7% in three months, while the S&P 500 gained 3.1%. The company is transitioning from a bitcoin miner into a builder of data centers leased to large technology companies. It has borrowed heavily to pay for them. Rent from those leases has only just started. Is it too early to buy Cipher Digital before that rent shows up in its revenue?
Cipher Digital Is Priced On Rent Not Yet Reported
Cipher Digital’s reported revenue is still falling. Revenue for fiscal Q2 2026 was $24.8 million, down 43.0% from a year earlier. Revenue also fell from $34.8 million in fiscal Q1. Management said the drop reflected the decommissioning of bitcoin mining at Black Pearl as the company moves toward contracted data center revenue.
Investors still pay a lot for those sales. The stock trades at 19.0 times its revenue over the last twelve months, compared with 3.1 times for the S&P 500. Its cheapest point at any quarter end since March 2023 was 5.3 times sales at the end of March 2025.
Cipher Digital is also losing money. The company recorded an operating loss over the last twelve months equal to 209.6% of its revenue, against 85.2% a year earlier. With a net loss, the price-to-earnings ratio is not meaningful. Buyers are not paying for the business Cipher Digital reports today. They appear to be paying for the leases that have yet to reach its revenue.
What Are Cipher Digital Buyers Counting On?
Buyers appear to be counting on that rent arriving on time. On the fiscal Q2 2026 call, management said its three executed data center campus leases are expected to generate about $793 million of average annualized net operating income over the ten years starting October 2026. The company delivered the first capacity at Black Pearl in August, two months ahead of schedule, and rent has begun there. On the same call, management said Phase 1 of its Barber Lake campus, comprising about 168 critical IT megawatts, was on track for rent to start in October.
Averytin News Financial update.