Cipher Mining (NASDAQ:CIFR) Posts Earnings Results, Misses Estimates By $0.41 EPS

by · The Markets Daily

Cipher Mining (NASDAQ:CIFR – Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($0.65) EPS for the quarter, missing analysts’ consensus estimates of ($0.24) by ($0.41), FiscalAI reports. Cipher Mining had a negative net margin of 427.79% and a negative return on equity of 117.65%. The company had revenue of $24.84 million for the quarter, compared to analyst estimates of $31.86 million. During the same period in the prior year, the company posted ($0.12) EPS.

Here are the key takeaways from Cipher Mining’s conference call:

  • Black Pearl capacity was delivered two months ahead of schedule at the tenant’s request, with rent already commenced; Barber Lake remains on track for rental payments beginning in October.
  • Cipher completed an $810 million Stingray project financing at a 6% coupon, its lowest project-level coupon to date, and said its three contracted projects are fully funded through completion. Management reported $870 million of unrestricted liquidity and does not currently expect to need additional equity.
  • Management described demand for hyperscale AI infrastructure as the strongest it has seen, with multiple prospective tenants for Reveille, Ulysses and Odessa. The company added the up-to-900-megawatt Apollo site and now cites a 4.4-gigawatt future pipeline within a 5.3-gigawatt, 11-site portfolio.
  • The ERCOT Batch Zero approval process was delayed following a letter from the Texas governor requesting further review and audits, creating uncertainty around the timing of approximately 2 gigawatts of prospective projects. Management remains confident its sites are well positioned but could not provide a revised timeline.
  • Second-quarter revenue fell to $25 million from $35 million sequentially, while the GAAP net loss widened to $268 million, driven largely by a $150.5 million non-cash warrant remeasurement loss. Executives also expect labor and equipment inflation to push future data-center costs above the historical $9 million–$11 million per megawatt range.

Cipher Mining Price Performance

Shares of NASDAQ:CIFR traded down $3.15 on Tuesday, hitting $21.01. The stock had a trading volume of 16,252,735 shares, compared to its average volume of 27,150,494. The firm’s 50 day moving average price is $23.39 and its 200-day moving average price is $19.12. The company has a debt-to-equity ratio of 6.13, a quick ratio of 3.13 and a current ratio of 3.13. Cipher Mining has a twelve month low of $4.55 and a twelve month high of $30.14. The company has a market capitalization of $8.60 billion, a price-to-earnings ratio of -9.12 and a beta of 3.20.

Analyst Upgrades and Downgrades

Several research firms have commented on CIFR. BTIG Research upped their price target on Cipher Mining from $25.00 to $35.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Morgan Stanley lowered their price objective on Cipher Mining from $48.50 to $47.00 and set an “overweight” rating on the stock in a research report on Monday, July 20th. Keefe, Bruyette & Woods upped their target price on Cipher Mining from $27.00 to $32.00 and gave the company an “outperform” rating in a research note on Tuesday, July 28th. Chardan Capital reaffirmed a “buy” rating and issued a $32.00 target price on shares of Cipher Mining in a research report on Tuesday. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Cipher Mining in a research note on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $28.74.

Get Our Latest Research Report on CIFR

Insider Activity

In related news, major shareholder Holding Ltd V3 sold 1,800,000 shares of Cipher Mining stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $26.62, for a total transaction of $47,916,000.00. Following the completion of the transaction, the insider directly owned 59,516,694 shares of the company’s stock, valued at $1,584,334,394.28. This trade represents a 2.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Patrick Arthur Kelly sold 48,000 shares of the company’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $19.36, for a total transaction of $929,280.00. Following the sale, the chief operating officer directly owned 1,451,856 shares in the company, valued at $28,107,932.16. This represents a 3.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 3,245,336 shares of company stock worth $83,803,938 over the last ninety days. Corporate insiders own 3.09% of the company’s stock.

Institutional Investors Weigh In On Cipher Mining

Large investors have recently bought and sold shares of the business. Los Angeles Capital Management LLC bought a new position in shares of Cipher Mining in the fourth quarter worth about $25,000. Arax Advisory Partners increased its holdings in shares of Cipher Mining by 274.2% in the fourth quarter. Arax Advisory Partners now owns 1,826 shares of the company’s stock valued at $27,000 after purchasing an additional 1,338 shares in the last quarter. Meeder Asset Management Inc. bought a new position in Cipher Mining in the 4th quarter worth approximately $28,000. Parallel Advisors LLC lifted its holdings in Cipher Mining by 663.0% during the 3rd quarter. Parallel Advisors LLC now owns 4,166 shares of the company’s stock worth $52,000 after buying an additional 3,620 shares in the last quarter. Finally, Rafferty Asset Management LLC bought a new position in Cipher Mining in the 2nd quarter valued at $54,000. 12.26% of the stock is currently owned by institutional investors.

Cipher Mining Company Profile

(Get Free Report)

Cipher Mining Inc is a Nasdaq-listed bitcoin mining company that develops, owns and operates large-scale mining facilities across the United States. The company focuses on deploying advanced ASIC hardware and securing long-term low-cost power contracts to optimize bitcoin production. By strategically locating its sites in regions with abundant energy supply, Cipher Mining seeks to maintain a competitive cost structure and deliver efficient hashrate capacity growth.

Founded in 2021 and headquartered in Austin, Texas, Cipher Mining has pursued an integrated approach encompassing site development, equipment procurement and operations management.

See Also