Cipher Digital Reports First High-Performance Computing Lease Revenue of $5.852 Million
Key Facts
Cipher Digital announced on November 2 that it had recorded high-performance computing lease revenue for the first time, after rent payments began at its Black Pearl facility, according to its third-quarter business update. Revenue from the activity was $5.852 million in the three months ended September 30, 2026, compared with zero in the same period a year earlier. Total revenue was $26.701 million for the quarter, the company said. Cipher said the start of revenue reflects the lease entering its rent commencement phase. The results come as the company shifts toward computing services and data centers alongside its Bitcoin mining business.
By comparison, Bitcoin mining revenue was $20.849 million in the third quarter of 2026, down from $71.707 million in the same quarter of 2025, according to Cipher's data. The difference between the two businesses highlights the shift of some revenue to leasing, while mining revenue declined year over year. The company's results summary put revenue at about $27 million, while adjusted earnings before interest, taxes, depreciation and amortization were negative $10 million. The detailed revenue figure in the company's table showed total revenue of $26.701 million for the same period. Cipher published its update on November 2, after the quarter ended on September 30.
In a contract development, Cipher amended its Barber Lake site agreement to include a second 10-year term directly with an artificial intelligence lab. The company said the amendment raises the site's total contracted revenue to about $9.1 billion and adds approximately $5.2 billion in lease payments. Extending the contract term provides longer-term visibility on revenue tied to the site, under the terms announced by the company. Cipher included the amendment in its third-quarter business update. This comes alongside the start of Black Pearl's high-performance computing lease revenue.
The company also said the Texas electricity grid operator granted a conditional interim base load rating for 1 gigawatt of capacity at its Colchis site. It added that the site received conditional studied load ratings for an additional 1.6 gigawatts of capacity. Cipher described the ratings as conditional, meaning the announced capacities are subject to meeting the relevant conditions. These capacities expand the site's potential within the company's plans for data center infrastructure. The company provided the details in its third-quarter update.
Cipher said it had begun developing lateral gas pipelines that could support up to 2.5 gigawatts of on-site power generation. It also added the 70-megawatt Horizon site in Texas to its portfolio and expects to activate it in 2029. The site is part of the company's plans to expand its portfolio of power and computing sites. The company did not specify an earlier date for bringing Horizon online in the reported details, citing only the expected year. These steps are part of the business update it announced on November 2.
Cipher closed at $6.86 a share on November 2, according to EL7 data, while IREN closed at $22.02 on the same day. The story data contains no verified figures for moves in Cipher or IREN shares in the November 3 session, or for percentage gains in other data center companies' shares in that session. The company began its third-quarter business update call on November 2 at 8:00 a.m. U.S. Eastern Time. The call covered the results and operational and contractual developments announced by the company. Cipher cited 2029 as the expected activation year for the Horizon site.