Cipher Mining (NASDAQ:CIFR) Posts Quarterly Earnings Results, Misses Expectations By $0.41 EPS

Key Points

• Cipher Mining missed quarterly expectations, reporting an EPS loss of $0.65 versus the $0.24 consensus estimate and revenue of $24.84 million versus $31.86 million expected. The company’s net loss widened to $268 million, partly due to a $150.5 million non-cash warrant remeasurement loss.
• The company reported progress on its growth plans, including early delivery of Black Pearl capacity and $810 million in project financing at a 6% coupon. Management cited strong hyperscale AI infrastructure demand, $870 million in unrestricted liquidity and no current need for additional equity.
• Execution risks remain: ERCOT approval delays cloud roughly 2 gigawatts of prospective projects, while labor and equipment inflation is expected to raise future data-center construction costs. Shares traded down 11.5%, despite analysts maintaining a consensus “Moderate Buy” rating with an average $28.74 price target.

Cipher Mining (NASDAQ:CIFR - Get Free Report) posted its earnings results on Tuesday. The company reported ($0.65) earnings per share for the quarter, missing analysts' consensus estimates of ($0.24) by ($0.41), FiscalAI reports. Cipher Mining had a negative net margin of 427.79% and a negative return on equity of 117.65%. The business had revenue of $24.84 million during the quarter, compared to the consensus estimate of $31.86 million. During the same period in the previous year, the firm earned ($0.12) EPS.

Here are the key takeaways from Cipher Mining's conference call:

• Black Pearl capacity was delivered two months ahead of schedule at the tenant’s request, with rent already commenced; Barber Lake remains on track for rental payments beginning in October.
• Cipher completed an $810 million Stingray project financing at a 6% coupon, its lowest project-level coupon to date, and said its three contracted projects are fully funded through completion. Management reported $870 million of unrestricted liquidity and does not currently expect to need additional equity.
• Management described demand for hyperscale AI infrastructure as the strongest it has seen, with multiple prospective tenants for Reveille, Ulysses and Odessa. The company added the up-to-900-megawatt Apollo site and now cites a 4.4-gigawatt future pipeline within a 5.3-gigawatt, 11-site portfolio.
• The ERCOT Batch Zero approval process was delayed following a letter from the Texas governor requesting further review and audits, creating uncertainty around the timing of approximately 2 gigawatts of prospective projects. Management remains confident its sites are well positioned but could not provide a revised timeline.
• Second-quarter revenue fell to $25 million from $35 million sequentially, while the GAAP net loss widened to $268 million, driven largely by a $150.5 million non-cash warrant remeasurement loss. Executives also expect labor and equipment inflation to push future data-center costs above the historical $9 million–$11 million per megawatt range.

Cipher Mining Trading Down 11.5%

Shares of CIFR opened at $21.37 on Tuesday. Cipher Mining has a 52-week low of $4.55 and a 52-week high of $30.14. The company has a market cap of $8.74 billion, a price-to-earnings ratio of -9.07 and a beta of 3.20. The company has a debt-to-equity ratio of 6.13, a quick ratio of 3.13 and a current ratio of 3.13. The stock has a fifty day moving average price of $23.39 and a two-hundred day moving average price of $19.12.

Insiders Place Their Bets

In related news, Director Cary M. Grossman sold 20,000 shares of the company's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $21.82, for a total transaction of $436,400.00. Following the transaction, the director owned 150,530 shares in the company, valued at $3,284,564.60. This represents a 11.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Patrick Arthur Kelly sold 48,000 shares of the business's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $19.36, for a total transaction of $929,280.00. Following the completion of the transaction, the chief operating officer directly owned 1,451,856 shares of the company's stock, valued at approximately $28,107,932.16. This represents a 3.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 3,245,336 shares of company stock valued at $83,803,938 over the last three months. Company insiders own 3.09% of the company's stock.

Hedge Funds Weigh In On Cipher Mining

Hedge funds have recently added to or reduced their stakes in the company. Arax Advisory Partners grew its position in shares of Cipher Mining by 274.2% during the 4th quarter. Arax Advisory Partners now owns 1,826 shares of the company's stock worth $27,000 after buying an additional 1,338 shares during the period. Vanguard Personalized Indexing Management LLC raised its position in shares of Cipher Mining by 5.7% in the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 30,928 shares of the company's stock valued at $456,000 after acquiring an additional 1,681 shares during the period. Los Angeles Capital Management LLC acquired a new stake in shares of Cipher Mining in the 4th quarter valued at approximately $25,000. Meeder Asset Management Inc. bought a new position in Cipher Mining during the 4th quarter worth approximately $28,000. Finally, Wedbush Securities Inc. boosted its stake in Cipher Mining by 18.6% during the 4th quarter. Wedbush Securities Inc. now owns 14,650 shares of the company's stock worth $216,000 after acquiring an additional 2,300 shares during the last quarter. Institutional investors own 12.26% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on CIFR. Rosenblatt Securities reaffirmed a "buy" rating and set a $30.00 price objective on shares of Cipher Mining in a report on Thursday, June 25th. Sanford C. Bernstein began coverage on Cipher Mining in a report on Wednesday, June 3rd. They issued an "outperform" rating and a $32.00 target price for the company. Weiss Ratings restated a "sell (d-)" rating on shares of Cipher Mining in a research report on Wednesday, June 24th. BTIG Research boosted their price target on Cipher Mining from $25.00 to $35.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Finally, Morgan Stanley dropped their price objective on Cipher Mining from $48.50 to $47.00 and set an "overweight" rating for the company in a research note on Monday, July 20th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Cipher Mining has a consensus rating of "Moderate Buy" and an average price target of $28.74.

Cipher Mining Company Profile

Cipher Mining Inc is a Nasdaq-listed bitcoin mining company that develops, owns and operates large-scale mining facilities across the United States. The company focuses on deploying advanced ASIC hardware and securing long-term low-cost power contracts to optimize bitcoin production. By strategically locating its sites in regions with abundant energy supply, Cipher Mining seeks to maintain a competitive cost structure and deliver efficient hashrate capacity growth.

Founded in 2021 and headquartered in Austin, Texas, Cipher Mining has pursued an integrated approach encompassing site development, equipment procurement and operations management.

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