The quarter's $31.6 million of net income is attributed mainly to a $127 million non-cash gain on warrants, and the same quarter reported a 22-cent diluted loss per share. Adjusted EBITDA swung to negative $9.96 million from positive $40.8 million a year earlier.
Cipher Digital reported $20.8 million of bitcoin mining revenue for the third quarter, down 71% from $71.7 million a year earlier, alongside $5.9 million of leasing revenue from high-performance computing, the first the company has recognized from that business. Total revenue was $26.7 million against $71.7 million in the same quarter of 2025, a 63% decline. The figures come from the business update the company published on November 2.
The drop is a reallocation rather than a mining-economics story. Cipher stopped mining bitcoin at its Black Pearl site in Texas in February to prepare the facility for a data center tenant, according to CoinDesk. Black Pearl delivered its first capacity in August, rent commenced there during the quarter, and that is where the leasing revenue came from. Bitcoin's network difficulty rose 5.92% in the second half of October while the seven-day average hashrate passed 1,000 EH/s, which compresses revenue per unit of hashrate across the industry, but the company's own explanation is capacity it chose not to point at bitcoin.
The profit line needs the same care. Net income before noncontrolling interest was $31.6 million, against a $3.3 million net loss a year earlier, and basic earnings came to 8 cents a share. Diluted earnings per share for the same quarter were negative 22 cents. MarketBeat's account of the earnings call attributes the swing primarily to a $127 million non-cash gain on the company's warrant liability, and CoinDesk reports that the gain came from revaluing warrants issued to Google, which agreed to backstop certain lease payments from the AI infrastructure company Fluidstack. None of it is cash the company received. Coinbase's third quarter had the same shape, with a $715.0 million gain on crypto held for investment supplying almost all of a profit reported against falling revenue.
Adjusted EBITDA, which excludes marks of that kind, was negative $9.96 million against positive $40.8 million a year earlier. Over nine months the company reported $86.4 million of revenue against $164.2 million and a net loss of $350.2 million against $88.0 million. One quarter of warrant accounting does not reverse those numbers.
The lease book is why the company is willing to give up mining revenue. An amendment to the Barber Lake lease adds a second 10-year term, taking it to 20 years, and brings total contracted revenue at the site to about $9.1 billion, of which about $5.2 billion is incremental rent. The release describes the counterparty only as a leading AI lab and does not name it. Delivery is phased against the tenant's own compute deployment, so the rent arrives on that schedule rather than on the company's.
Cipher has not stopped mining. The Odessa site produced about 296 bitcoin during the quarter and the company sold 632 bitcoin for $45.5 million in cash proceeds, according to MarketBeat's report of the call. Bitcoin on the September 30 balance sheet was carried at $25.9 million, and the release gives neither a coin count nor a deployed hashrate figure.
The rest of the update is power and capital. Cipher acquired Horizon, a 70 megawatt Texas site it expects to energize in 2029, and received a conditional base load classification for 1 gigawatt at Colchis plus conditional studied load classifications for 1.6 gigawatts through ERCOT's Batch Zero process. It is building lateral pipelines to support up to 2.5 gigawatts of on-site generation, says 270 megawatts of capacity is available in 2027, and puts its development pipeline at about 5.9 gigawatts. It also completed an $850 million offering of 0.000% convertible senior notes due 2032 and equitized about $165.9 million of 1.750% convertible notes due 2030, retiring more than 90% of that issue.
JPMorgan cut its price target on the stock to $18 from $22 on November 3 while keeping an Overweight rating, valuing the company at $8.60 a share on 15 times enterprise value to EBITDA for contracted capacity and $11.61 at 17.5 times. Investing.com's summary of that note, published on November 3, put the stock at $6.86 at the time of writing, down close to 70% over the past year and just above a 52-week low of $6.62.
Chief Executive Officer Tyler Page said in the release that “Cipher was built for this market, and this quarter we took important steps to strengthen our position for the long term,” and told the earnings call that “Tenant demand across our pipeline has never been stronger.” The company now publishes as Cipher Digital Inc. and trades as CIFR; earlier quarterly updates on the same investor site were issued under the Cipher Mining name.
The $5.9 million of leasing revenue is 22% of the quarter's $26.7 million total and the first payment against a 20-year book the company values at about $9.1 billion. It arrived in a quarter when bitcoin mining revenue fell by $50.9 million, from $71.7 million to $20.8 million.
