Cipher Digital’s third-quarter report came with a $31.6 million profit attached, but the bitcoin side of the business tells a different story. The former miner now holds about 310 BTC, down from 1,433 at the end of last year, and its mining revenue fell 71% from a year earlier.
The figures come from the Cipher Digital bitcoin disclosures in its quarterly report filed with the SEC on Monday, alongside a business update that framed the quarter as a milestone in its move into data centers for AI and high-performance computing.
Where the bitcoin went
Cipher started 2026 with 1,433 bitcoin on its balance sheet, worth $125.4 million at the time. Over the first nine months it mined 1,095 more and received 34 from joint ventures it has since exited. It sold 2,252.
Those sales brought in $168.9 million, which works out to roughly $75,000 per coin. They also produced $47.3 million in realized losses over the nine months, because much of the stack had been booked at higher prices. By 30 September the company held about 310 BTC with a fair value of $25.9 million, and 10 of those were pledged in trading strategies.
The filing is plain about why. Cipher says it funds operations through at-the-market stock sales, debt, and sales of the bitcoin it mines, and it records all of its bitcoin as a current asset because it expects to keep converting it to cash. Cash used in operations reached $283.2 million in the first nine months.
That puts Cipher firmly on the seller side of the miner ledger. Earlier this year public miners offloaded a record 32,000 BTC in the first quarter, and companies moving into AI hosting have little reason to rebuild a treasury.
Mining shrinks to one site
Total revenue fell 63% to $26.7 million from $71.7 million. Bitcoin mining made up $20.8 million of that, down $50.9 million year on year. Cipher said the drop came mainly from fewer coins mined after it stopped mining at its Black Pearl facility in February to convert it into a data center. Mining revenue in the quarter came from the Odessa site alone.
Black Pearl produced the company’s first lease revenue, $5.9 million, after the initial phase of its lease began in August. Cipher now reports bitcoin mining and HPC leasing as separate segments for the first time.
The profit is an accounting gain
The headline profit rests on a $127.2 million non-cash gain from the change in fair value of warrants issued to Google. Strip that out and the quarter looks weaker. Operating loss widened to $71.9 million from $37.6 million, and adjusted EBITDA swung to a loss of about $10 million from a $40.8 million profit a year earlier.
Basic earnings were 8 cents a share. On a diluted basis the company reported a loss of 22 cents. For the nine months, Cipher lost $350.2 million.
The cost of the build-out is showing up below the operating line too. Interest expense rose to $59.0 million in the quarter from $1.3 million a year earlier, partly offset by $32.7 million of interest income on its cash. Long-term borrowings stood at $5.45 billion at the end of September, against $2.71 billion at the end of 2025. Cash and equivalents were $656.0 million.
The bet on leases
Cipher points investors to its contracted revenue. It extended the Barber Lake lease with what it calls a leading AI lab to a 20-year term, lifting total contracted revenue at the site to about $9.1 billion. It also completed an $850 million offering of zero-coupon convertible notes due 2032 and says its development pipeline totals about 5.9 GW.
The shift mirrors what other miners have done, including MARA’s power plant purchase aimed at AI demand. For bitcoin itself, the practical effect is simple. A company that once held more than a thousand coins is now a small holder, and the coins it still mines are being sold to help fund concrete and steel in Texas.
FAQ
How much bitcoin does Cipher Digital hold?
About 310 BTC as of 30 September 2026, worth $25.9 million, down from 1,433 BTC at the end of 2025.
Was Cipher profitable in the third quarter?
It reported $31.6 million in net income, but that came from a $127.2 million non-cash warrant gain. It posted a $71.9 million operating loss and negative adjusted EBITDA.
Is Cipher still mining bitcoin?
Yes, at its Odessa facility. It stopped mining at Black Pearl in February to convert the site into a leased data center.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
