NASDAQ: CIFR · Data Center Landlord · New York, NY
Wholesale HPC ColocationEx-Bitcoin miner
$25.94
+1.0% today
June 28, 2026
4.2
TOTAL GW
0.21
OPERATIONAL GW
3.29
ANNOUNCED GW
$10.5B
MARKET CAP
$2.5B
VAL / GW
Cipher Digital is the powered-shell counter-bet to the AI-cloud operators: own the Texas power and land, and let Amazon- and Google-backed tenants own the GPUs. Its ~0.9 GW of operational-and-contracted capacity is small today, but it is fully leased to investment-grade hyperscalers — and the first rent checks land in late 2026.
01
Overview
Cipher Digital Inc. (Nasdaq: CIFR; formerly Cipher Mining, rebranded February 2026) is a West Texas power-and-land developer pivoting from Bitcoin self-mining to wholesale HPC colocation. It originates power, builds substations and cooled shells, and leases them to hyperscalers who bring their own compute.
Its grid interconnections — finalized before ERCOT's PGRR145 'Batch 0' lockdown — are a competitive moat. The model is asset-light on silicon: long-duration triple-net leases backed by Amazon and Google-backstopped Fluidstack target utility-like cash flows with near-zero GPU-obsolescence risk, at the cost of high pre-revenue leverage during the build.
02
Market Thesis
Cipher's bet is that owning the scarce inputs — grid-connected Texas power and land — while letting tenants own the depreciating GPUs is the lower-risk way to monetize the AI build-out. Triple-net leases backed by investment-grade hyperscalers turn megawatts into bond-like cash flows.
The catalyst is conversion: Barber Lake (September 2026) and Black Pearl (October 2026) flipping from construction to rent commencement. Until then the company carries ~$5B of project debt against a self-mining business in wind-down — the re-rating follows the first hyperscale rent checks, not the announcements.
KEY DATA
Price$25.94
Market cap$10.5B
Total GW4.2 GW
Operational0.21 GW
Contracted0.70 GW
Announced3.29 GW
Val / GW$2.5B
COVERAGE
Analyst · Every Megawatt Initiated · Jun 2026 Stance · Power-Long
CIPHER DIGITAL · POWER LEDGER RESEARCHJUNE 28, 2026
03
Approach
Cipher originates power and land, builds substations and cooled shells, and leaves the GPUs to the tenant — a wholesale colocation developer sitting near the power end of the spectrum. Long-duration triple-net leases backed by investment-grade hyperscalers (Amazon; Google-backstopped Fluidstack) make it a utility-like infrastructure play with near-zero silicon-obsolescence risk.
OWNS POWER · LANDSELLS COMPUTE · NEOCLOUD
04
Power Position
Operational · energized0.21 GW
Contracted · not operational0.70 GW
Announced · pipeline3.29 GW
Operational power is energized and earning today. Secured is grid-secured or under construction — not yet drawing load. Announced is pipeline — committed sites and stated intent. The gap between them is where the risk, and the re-rating, live.
05
Financials
LINE ITEM
VALUE
PERIOD
Revenue$35MQ1-26
Adj. EBITDA$(48)MQ1-26
Net income$(114)MQ1-26
Unrestricted cash$715MQ1-26
Restricted (escrow)$3.5BQ1-26
Total debt$5.2BQ1-26
Net cash$(1.0)BQ1-26
Illustrative figures — auto-populated from latest SEC filings. Verify before relying.
CIPHER DIGITAL · POWER LEDGER RESEARCHJUNE 28, 2026
06
Sites & Contracts
SITE
LOCATION
CAPACITY
STATUS
Odessa
Ector County, TX
207 MW
OPERATIONAL
Barber Lake
Colorado City, TX
300 MW
SECURED
Black Pearl
Wink, TX
300 MW
SECURED
Stingray
Andrews County, TX
100 MW
SECURED
Reveille
Cotulla, TX
70 MW
ANNOUNCED
Colchis
West Texas
1.0 GW
ANNOUNCED
The 3Ms
Texas & Ohio
1.5 GW
ANNOUNCED
CONTRACTS & OFFTAKE
COUNTERPARTY
BASIS
TERM
POWER
VALUE
ARR
Amazon Web Services
Triple-net · Black Pearl · 216 MW IT
15 yr
216 MW
$5.5B
$367M
Fluidstack (Google backstop)
Colocation · Barber Lake · 168 MW IT
10 yr
168 MW
$3.0B
$300M
Amazon Web Services
Triple-net · Stingray · 70 MW IT
15 yr
70 MW
$2.9B
$193M
TOTAL
454 MW
$11.4B
$860M
07
Risk
Construction & commissioning timing: cash flow depends on hitting rent commencement — Barber Lake (Sep 2026), Black Pearl (Oct 2026), Stingray (Apr 2027); transformer, cooling, or fiber delays push revenue right.
High leverage & pre-revenue burn: ~$5.2B of project debt with fixed service obligations accumulated before meaningful HPC rent; prolonged delays strain corporate liquidity and force dilutive equity.
Counterparty concentration: Amazon Data Services and Fluidstack are ~100% of the contracted lease book — a credit event or dispute at either would hit the model hard.
ERCOT power-market & curtailment risk: despite triple-net leases, grid instability, congestion, or SB 6 large-load rules could constrain site performance.
Transition trough: revenue still leans on legacy Bitcoin self-mining (winding down by late 2027) until HPC rents ramp.
Subsidiary Stingray Compute LLC priced $810M of 6.000% notes due 2031 to fund a 70 MW Andrews, Texas HPC site fully pre-leased to Amazon Web Services (~$2B contracted revenue).
Non-recourse project financing at ~6.0–6.25%, secured by a first lien on Stingray and backed by the Amazon lease guarantee — the tenant's credit doing the borrowing.
Q1 revenue was ~$35M with negative ~$48M adjusted EBITDA as Cipher pivots to three hyperscale leases totaling 907 MW and roughly $11.4B in contracted revenue.
Structural topping-out roughly seven months from design kickoff keeps the Fluidstack lease (Google-backstopped) on schedule for its first rent commencement.
Cipher executed a 15-year, ~100 MW campus lease with an investment-grade hyperscale tenant and closed a $200M revolving credit facility led by Morgan Stanley.
Adds parent-level dry powder (Morgan Stanley, Goldman, JPMorgan and others) to fund the equity portion of the development pipeline; undrawn at quarter-end.
Alongside Q4/FY2025 results, the company rebranded to Cipher Digital to signal its full pivot to HPC/AI data centers and a plan to wind down its bitcoin mining treasury.
Subsidiary Black Pearl Compute LLC priced $2.0B of notes to fund the Amazon-leased Black Pearl HPC data center in Wink, Texas and reimburse $232.5M of prior equity.
DISCLAIMER
This report is produced by Every Megawatt for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Figures are illustrative and auto-generated from public filings; they may be incomplete or inaccurate and should be independently verified. Every Megawatt makes no warranty as to accuracy and accepts no liability for any use of this material.