Quick Summary
- Cipher Digital (previously known as Cipher Mining) posted Q4 revenue of $60M, falling short of the $84.4M consensus
- The company’s adjusted EPS registered a loss of $0.14, exceeding the anticipated loss of $0.06
- A strategic rebrand reflects the firm’s transition from cryptocurrency mining to high-performance computing infrastructure
- The company locked in 600 MW of data center capacity through partnerships with AWS and Google
- Shares declined approximately 5% in early trading but recovered to close up 3.9% following the earnings release
Cipher Digital (CIFR) delivered fourth-quarter financial results that fell below market expectations across both revenue and earnings metrics, even as the organization advances its substantial operational transformation beyond bitcoin mining activities.
The company generated $59.71 million in quarterly revenue, significantly trailing analyst projections that ranged between $84 million and $86 million. Adjusted loss per share reached $0.14, surpassing the consensus loss estimate of $0.06 to $0.12 across various research sources.
For the three-month period, the adjusted net loss totaled $55 million. The firm recorded a net margin of negative 34.16% alongside a negative return on equity measuring 9.57%.
Following the earnings announcement, shares tumbled approximately 5% during premarket hours. However, the stock demonstrated resilience, opening at $15.22 and climbing roughly 3.9% by day’s end.
The organization officially completed its transformation from Cipher Mining to Cipher Digital throughout the quarter, underscoring management’s commitment to its new strategic direction.
This strategic realignment centers on high-performance computing infrastructure development, particularly large-scale data center facilities. Company leadership characterized 2025 as a watershed year marking the departure from cryptocurrency production activities.
Major Infrastructure Agreements
Throughout the quarter, Cipher locked down 600 megawatts of committed data center infrastructure capacity. This portfolio encompasses a 15-year agreement for 300 MW with Amazon Web Services, complemented by a decade-long 300 MW arrangement involving Fluidstack and Google.
To finance the infrastructure development, Cipher successfully raised $3.73 billion via three senior secured bond issuances. These proceeds are designated specifically for development work at the Barber Lake and Black Pearl data center sites, with both projects reportedly progressing according to plan.
Additionally, the company divested its 49% ownership interests in three cryptocurrency mining joint ventures for approximately $40 million in equity consideration, effectively severing connections with legacy business operations during this strategic repositioning.
Market Analyst Views and Internal Trading
Notwithstanding the quarterly shortfall, Wall Street analyst sentiment remains predominantly favorable. Fourteen research analysts maintain Buy ratings, while one assigns a Hold and another rates it a Sell. The overall consensus stands at “Moderate Buy” with a mean price objective of $25.11.
Keefe, Bruyette & Woods elevated their price objective from $13.00 to $22.00 in late January, maintaining a “moderate buy” stance. Needham & Company increased their target to $26.00 with a Buy recommendation last November.
Weiss Ratings represents the sole bearish voice, maintaining a “sell” recommendation as of late December.
Regarding insider transactions, company board members offloaded a combined 182,825 stock units during the previous quarter, representing approximately $3.08 million in total value. Internal stakeholders currently control roughly 2.63% of outstanding shares.
Institutional investors maintain ownership of 12.26% of the company. Multiple investment funds have expanded their holdings recently, notably Prudential Financial, which more than doubled its position during Q2.
CIFR shares trade within a 52-week band of $1.86 to $25.52. The stock’s 50-day moving average currently rests at $16.36, while its 200-day moving average stands at $15.00.
The organization carries a debt-to-equity ratio of 1.31, maintains a current ratio of 2.49, and commands a market capitalization of approximately $6.01 billion.
