Cipher Digital’s $31.6M profit comes despite a 63% revenue decline
Cipher Digital reported a $31.6 million profit for the third quarter of 2026 as its shift toward AI data center leasing began generating revenue. But the profit largely reflected a noncash accounting gain tied to Google warrants, while revenue dropped 63% and operating losses widened.
The company’s November 2, 2026, SEC filing shows quarterly revenue of $26.7 million, compared with $71.7 million a year earlier. Bitcoin mining brought in $20.8 million, a 71% decline, as Cipher redirected computing capacity from mining to leasing data centers to artificial intelligence companies.
Operating results contrasted with the headline profit. Cipher’s operating loss reached $71.9 million, versus $37.6 million in the corresponding quarter a year earlier. Adjusted EBITDA, a measure that excludes certain accounting items, turned negative at $10 million, down from positive $40.8 million.
The reported net profit was largely driven by a $127.2 million noncash gain resulting from the revaluation of warrants issued to Google. Google agreed to guarantee certain lease payments owed by AI infrastructure company Fluidstack.
Cipher Digital’s profit comes as its shift to AI leasing begins generating revenue
Cipher earned its first AI data center leasing revenue in the quarter, totaling $5.9 million. This came after the initial phase of its Black Pearl data center in Texas began operating in August 2026.
The facility had stopped mining bitcoin in February to prepare for its AI tenant. Black Pearl’s transition marked the operational side of Cipher Digital’s shift, even as the Google warrant revaluation largely explained its quarterly profit.
Cipher also extended the lease at its Barber Lake data center to 20 years, taking contracted revenue for that site to approximately $9.1 billion.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for several international crypto-related magazines and CMO at Eidoo. She is now the co-founder of The Cryptonomist.
She is also a marketing teacher at Digital Coach in Milan and she published a book about NFTs for the Italian publishing house Mondadori, while she is also helping artists and company to entering in the sector. As advisor, Amelia is also involved in metaverse-related project such as The Nemesis and OVER.
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