TLDR
- Cipher Digital (previously known as Cipher Mining) delivered Q4 revenue of $60M, falling short of the $84.4M consensus
- Adjusted loss per share reached $0.14, exceeding the anticipated $0.06 loss
- Strategic rebrand signals company’s transformation from cryptocurrency mining to high-performance computing infrastructure
- Major cloud partnerships announced: 600 MW in data center capacity locked in with AWS and Google
- Shares initially dropped approximately 5% before market open but climbed 3.9% during regular trading
Cipher Digital (CIFR) unveiled its fourth-quarter financial performance, falling short of Wall Street’s projections across key metrics while simultaneously announcing a dramatic business transformation away from cryptocurrency mining.
The company’s quarterly revenue totaled $59.71 million, significantly trailing analyst projections that ranged between $84–86 million. On the earnings front, the adjusted loss per share of $0.14 exceeded expectations, which had forecasted losses between $0.06 and $0.12.
For the quarter, Cipher reported an adjusted net loss of $55 million, accompanied by a net margin of negative 34.16% and return on equity of negative 9.57%.
Initial market reaction saw shares decline approximately 5% during premarket hours. However, the stock demonstrated resilience, opening at $15.22 and ultimately posting gains of roughly 3.9% for the trading session.
The quarter also marked the company’s official transition from Cipher Mining to Cipher Digital, underscoring leadership’s commitment to a new strategic direction.
This transformation centers on high-performance computing infrastructure development, particularly enterprise-scale data center operations. Company executives characterized 2025 as a pivotal year marking the departure from bitcoin mining activities.
Major Data Center Partnerships Announced
Cipher’s fourth quarter featured the securing of 600 megawatts in contracted data center capacity through significant partnerships. The agreements include a 15-year arrangement for 300 MW with Amazon Web Services, alongside a decade-long 300 MW agreement involving Fluidstack and Google.
To finance this ambitious expansion, the company successfully raised $3.73 billion via three senior secured bond offerings. These funds are designated for development at the Barber Lake and Black Pearl data center sites, with both projects reportedly progressing according to schedule.
Additionally, Cipher divested its minority stakes (49%) in three bitcoin mining joint ventures, generating approximately $40 million in stock proceeds. This divestiture represents a clear break from the company’s previous operations as it pursues its new strategic vision.
Wall Street Outlook and Trading Activity
Notwithstanding the quarterly shortfall, Wall Street maintains an optimistic outlook on CIFR. Analyst consensus shows fourteen Buy recommendations, one Hold rating, and a single Sell rating. The overall rating stands at “Moderate Buy” with a mean price target of $25.11.
Keefe, Bruyette & Woods upgraded their price objective from $13.00 to $22.00 in late January, maintaining a “moderate buy” stance. Needham & Company established a $26.00 target with a Buy recommendation in November.
Weiss Ratings stands as the sole bearish voice, maintaining a “sell” rating as of late December.
Regarding insider transactions, company directors divested a combined 182,825 stock units throughout the previous quarter, representing approximately $3.08 million in value. Current insider ownership stands at roughly 2.63% of outstanding shares.
Institutional investors control 12.26% of the company. Multiple institutional players expanded their holdings recently, notably Prudential Financial, which increased its position by more than 100% during Q2.
CIFR shares have traded within a 52-week range spanning $1.86 to $25.52. Current technical indicators show the 50-day moving average at $16.36, with the 200-day moving average positioned at $15.00.
The company maintains a debt-to-equity ratio of 1.31, a current ratio of 2.49, and commands a market capitalization of approximately $6.01 billion.
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