0001819989-26-000028
SEC filingRevenue declined 29% YoY to $34.8M due to lower bitcoin prices, while net loss widened to $114.3M on higher costs and interest expense.
For the three months ended March 31, 2026, revenue from bitcoin mining decreased 29% to $34.8 million from $49.0 million in the prior year period. The decline was primarily driven by a decrease in the average bitcoin price, partially offset by an increase in the amount of bitcoin mined. Cost of revenue increased 19% to $17.7 million due to higher power costs at the Black Pearl Facility, which commenced operations in July 2025. Gross profit fell to $17.1 million (49.2% margin) from $34.1 million (69.6% margin) a year ago.
Operating loss widened to $114.6 million from $38.1 million, driven by a $20.7 million increase in compensation and benefits (to $35.0 million) from higher headcount and stock-based compensation, a $2.7 million rise in general and administrative expenses (to $11.7 million) from legal fees, and a $28.2 million unfavorable change in fair value of the power purchase agreement (vs. a $7.3 million gain in 2025). Depreciation and amortization decreased $24.5 million to $19.0 million due to asset write-downs. Net loss attributable to common stockholders was $114.3 million, compared to $39.0 million in the prior year.
The company operates a single reportable segment: bitcoin mining. Revenue is generated from mining activities at the Odessa and Black Pearl Facilities. The segment's operating loss reflects the overall corporate results, as all costs are attributed to mining operations. The company is transitioning toward HPC data center leasing, but no HPC revenue was recognized in the period.
Management expects to continue developing its HPC data center pipeline, having executed three HPC leases as of March 2026. The company entered into a $200 million revolving credit facility in March 2026 to enhance liquidity and fund growth. No specific revenue or earnings guidance was provided. The company changed its primary non-GAAP measure to Adjusted EBITDA, which was ($48.2 million) for the period. Management believes existing resources, including cash of $715.2 million and access to capital markets, are sufficient for at least 12 months.
Cash and cash equivalents were $715.2 million at March 31, 2026, supported by $3.5 billion in restricted cash tied to 2030 and 2031 Senior Secured Notes for facility construction. Total assets reached $6.39 billion with property and equipment net at $1.31 billion. Long-term borrowings net stood at $4.38 billion after $2.0 billion issuance of 2031 Senior Secured Notes.
Note 13 discloses $1,567.9 million in construction commitments as of March 31, 2026, concentrated on Barber Lake and Black Pearl HPC retrofits. No material litigation or loss contingencies were accrued.
The Company issued $1.97 billion in net notes proceeds and drew on financing arrangements while spending $554.0 million on property and equipment. No dividends were declared. Treasury activity was limited to RSU tax withholdings.
Notes confirm one operating segment, Bitcoin Mining, generating $34.8 million revenue and $67.8 million segment operating loss in Q1 2026. HPC leasing activities are tracked separately but not yet reported as an operating segment pending lease commencement.
Cipher Mining Inc. reported a net loss of $114.3M for Q1 2026, yet generated positive operating cash flow (CFO) of $91.2M. This substantial divergence is primarily attributable to significant non-cash charges, including $59.2M in amortization of debt discount and issuance costs, $28.2M from the change in fair value of a power purchase agreement, and $27.0M in share-based compensation. A $43.6M non-cash gain from the change in fair value of warrant liability partially offset these items. The year-over-year improvement in CFO from -$24.5M to +$91.2M was also aided by a favorable swing in operating liabilities.
Capital expenditure intensity was extreme, with $692.9M spent on property and equipment, dwarfing the $83.2M spent in the prior year period. This resulted in deeply negative free cash flow of -$601.7M. The company did not return capital to shareholders via repurchases or dividends, instead relying on financing activities which provided $1.3B, largely from long-term borrowings, to fund its growth initiatives. The cash flow profile reflects a company in an aggressive infrastructure build-out phase, where operating cash generation is currently insufficient to cover investment needs.