Cipher Digital posts $31M profit as AI data-center pivot starts

Cipher Digital reported $31.6 million in third-quarter net income despite revenue falling 63% to $26.7 million, after a $127.2 million noncash accounting gain on warrants issued to Google flipped an operating loss into a reported profit. Bitcoin mining revenue dropped 71% to $20.8 million as the company shifted computing capacity into AI data centers.

• The quarter produced Cipher's first data-center revenue — $5.9 million — after the initial phase of its Black Pearl facility in Texas began operating in August; Cipher stopped mining bitcoin there in February to prepare for the tenant.
• The operating loss widened to $71.9 million, and counting dilutive securities the quarter swings to a 22-cent-per-share loss.
• Cipher extended its Barber Lake data center lease to 20 years, bringing contracted revenue at the site to about $9.1 billion.