Cipher Digital Posts $31.6 Million Q3 Profit on Noncash Warrant Gain

Cipher Digital Inc. posted $31.6 million in third-quarter net income despite a 63% revenue decline, as a noncash warrant gain lifted earnings while Bitcoin (BTC) mining revenue contracted.

A $127.2 million noncash accounting gain related to Google warrants helped produce the profit. The company's operating loss widened to $71.9 million from $37.6 million.

Revenue fell to $26.7 million from $71.7 million in the year-earlier quarter. Bitcoin mining generated $20.8 million, down $50.9 million. Cipher shifted capacity from Bitcoin mining toward leasing data centers to AI companies.

The first phase of Cipher's Black Pearl data center in Texas began operating in August and generated $5.9 million, the company's first revenue from data center leasing.

Adjusted earnings before interest, taxes, depreciation and amortization shifted to a $10 million loss from a $40.8 million profit a year earlier.