Cipher Digital reports first HPC lease revenue amid operating loss

Cipher Digital Inc. has reported its first high-performance computing (HPC) lease revenue, marking a transition in its business model. The company recognized approximately US$5.85 million in HPC lease revenue for the third quarter of 2026, primarily from its Black Pearl project. This new revenue stream accounted for roughly 22 percent of the company's total third-quarter revenue of US$26.7 million.

Despite the commencement of HPC rent, the company reported a significant operating loss of approximately US$71.9 million for the quarter. This follows a substantial decline in its traditional bitcoin-mining revenue, which fell to US$20.85 million from US$71.71 million in the same period the previous year.

In a separate development, Cipher Digital announced an amendment to its Barber Lake project. The amended lease with a leading AI lab now spans 20 years, adding approximately US$5.2 billion in incremental contracted revenue. While the company is seeing the start of lease income, it faces the challenge of scaling this segment to offset losses in its mining operations.