Cipher Digital reports $31.6 million Q3 profit driven by Google warrant gain

Cipher Digital reported a $31.6 million net income for the third quarter, according to an SEC filing. The profit was primarily driven by a $127.2 million noncash warrant gain related to Google, rather than core operations.

The gain stems from a paper revaluation of warrants held by Google in exchange for guaranteeing a portion of Fluidstack’s rent. Despite the reported net income, the company’s total revenue fell 63% year-over-year to $26.7 million. Bitcoin mining revenue specifically dropped 71% to $20.8 million as the company shifts computing capacity from mining toward leasing data centers to artificial intelligence firms.

Operating losses widened to $71.9 million, up from $37.6 million in the previous year. The company noted that the decline in mining revenue was largely deliberate, including the decision to stop bitcoin mining at its Black Pearl facility in Texas to prepare it for a new tenant. Additionally, the Barber Lake lease has been extended to 20 years, representing approximately $9.1 billion in contracted revenue.