Cipher Digital reports $31.6 million net profit, $71.9 million operating loss

Cipher Mining, operating as Cipher Digital, achieved a net profit of $31.6 million in the third quarter, despite a 63% decline in operating revenue. The main reason for this is the accounting valuations of guarantees for Google, related to data center lease agreements. The actual operational situation shows an operating loss of $71.9 million and a negative EBITDA of $10 million. In 2023, the company ceased Bitcoin mining at the Black Pearl facility in Texas, converting it into AI servers, which generated $5.9 million in revenue from server space rentals. CEO Tyler Page emphasized that securing a 20-year contract for the Barber Lake facility will bring in $9.1 billion in long-term revenue. This transformation indicates changes in the industry, where traditional cryptocurrency mining is giving way to servicing the AI sector.

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