Cipher Digital sold 1,619 BTC at $47.7M loss before rent

Cipher Digital sold 1,619 Bitcoin for $123.4 million in the first half of 2026 and booked a $47.7 million realized loss. The sales and losses occurred before rent for the company’s Black Pearl AI data center began in early August.

The company’s regulatory filing shows second-quarter revenue came entirely from Bitcoin mining at its Odessa facility. Cipher reported $24.8 million in mining revenue for the quarter, down from $43.6 million a year earlier. The filing allocates $23.5 million of the first-half realized loss to the second quarter. At June 30 the firm held 646 Bitcoin, valued at about $37.8 million.

Interest expense in the quarter was $66.7 million, roughly 2.7 times the quarter’s mining revenue. Operational cash use and capital spending added to funding needs: Cipher used $152 million of operating cash in the first half and spent $964.3 million on property and equipment. Bitcoin sales generated $123.4 million, and net financing activities provided $2.84 billion, which included $129.2 million raised through at-the-market equity sales.

The filing presents company-wide cash flows without assigning Bitcoin-sale proceeds to specific projects. As of June 30, Cipher had $831.8 million in cash and cash equivalents and $3.73 billion of restricted cash that is not available for general corporate use.

Project-level financing for Black Pearl includes about $2 billion of project notes held by project entities and secured by project assets; the parent company retains limited construction-completion exposure and customary recourse carve-outs. Cipher began delivering initial capacity at Black Pearl in early August, two months ahead of schedule, and rent started when capacity deliveries began. The company did not disclose the amount of rent collected or provide a quarter-by-quarter ramp. The third quarter will be the first period to include Black Pearl rent and related revenue and costs.

A separate $150.5 million noncash warrant charge tied to the Barber Lake lease increased Cipher’s quarterly net loss to $267.5 million. The warrant charge is recorded apart from Black Pearl’s cash debt service.