Cipher Digital shares tumble 15.7% after wider Q2 losses
Miner sold 1,619 Bitcoin for $123.4 million in the first half as interest expense outpaced mining revenue and Bernstein kept its Outperform rating, citing progress at three contracted AI data center sites.
Cipher Digital shares fell 15.7% after the bitcoin miner reported wider second-quarter losses. In the first half, the company sold 1,619 Bitcoin for $123.4 million and recorded $47.7 million in realized losses, while second-quarter interest expense of $66.7 million was about 2.7 times its $24.8 million in mining revenue. A $150.5 million noncash warrant charge tied to Google's backing of the Barber Lake lease widened quarterly net loss to $267.5 million. Bernstein maintained its Outperform rating and $32 price target, saying Cipher's three contracted AI data center projects remain on track.
- At-the-market stock sales: A method of issuing shares into the open market over time at prevailing prices to raise capital.
- Noncash warrant charge: An accounting expense from changes in the value or issuance terms of warrants that affects earnings without an immediate cash outflow.
- Restricted cash: Cash set aside for specific contractual or legal purposes and not freely available for general corporate use.