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Cipher Digital undergoes rebranding as it shifts focus from bitcoin mining to high-performance computing, shares decline.
Revenue and adjusted EPS fall short of expectations as the company focuses on large-scale data center development.
Cipher is shifting its emphasis from bitcoin mining to high-performance computing (Shutterstock modified by CoinDesk)
Key points:
- Cipher Digital did not meet analysts’ revenue and EPS projections in the fourth quarter.
- The firm, previously known as Cipher Mining, rebranded to signify a transition from bitcoin production to high-performance computing.
- Shares declined 5% in pre-market trading.
Cipher Digital (CIFR) shares dropped approximately 5% in premarket trading following the release of fourth-quarter results that fell below Wall Street forecasts and underscored its transition away from bitcoin mining towards high-performance computing (HPC) data centers.
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The company posted fourth-quarter revenue of $60 million, which is below analyst expectations of $84.4 million. Adjusted earnings per share reflected a loss of $0.14, exceeding the anticipated loss of $0.06. Cipher recorded an adjusted net loss of $55 million for the quarter.
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Management indicated that 2025 is expected to be a pivotal year as it shifts focus from bitcoin mining to long-term HPC infrastructure. In the quarter, Cipher secured 600 megawatts of contracted capacity, including a 15-year, 300 megawatt (MW) lease with Amazon Web Services and a 10-year, 300 MW lease with Fluidstack and Google.
The firm also raised $3.73 billion through three senior secured bond offerings to support construction at its Barber Lake and Black Pearl data center projects, both of which are on track.
Cipher divested its 49% interests in three mining joint ventures for around $40 million in stock, further streamlining its structure as it evolves into a data center-oriented business model.
