Cipher Digital's HPC pipeline is growing faster than its bitcoin business
The company's second-quarter presentation shows 700 MW of contracted HPC capacity and $11.4 billion of potential base revenue, while Odessa's mining operation remains a smaller and loss-making leg.
Cipher Digital now describes itself less as a bitcoin miner with an AI option and more as a power and data-center company with mining still in the mix. Its Q2 2026 business update presentation says the company has 700 megawatts of contracted gross HPC capacity, about $11.4 billion of contracted revenue and roughly $793 million in average annualized net operating income across its contracted portfolio.
Those are company projections and contract figures, not revenue already recognized. The same deck puts operating and contracted capacity at 907 MW, with another 4.4 GW in its current grid pipeline. That pipeline is expected to be energized between 2027 and 2030 or later, and much of it remains subject to interconnection and construction work.
The first sites are moving from plan to rent
Cipher says the first Black Pearl data-center capacity was delivered in August, two months ahead of the amended lease schedule, with rent beginning after partial occupancy and beneficial use. Barber Lake is expected to deliver initial capacity in September, with rent expected to start in October. The company is targeting the first half of 2027 for delivery at Stingray, backed by $810 million of financing.
The company also acquired an option for the Apollo site, which could reach 900 MW and has been submitted as studied load in ERCOT Batch Zero. That is a new step for a power-heavy business, but studied load is part of the interconnection process, not an operating data center. The value of the pipeline will depend on turning those stages into contracted tenants, delivered megawatts and recurring invoices.
Mining remains the measurable operating base
Odessa, Cipher's bitcoin-mining operation, produced about 346 BTC in the second quarter from 207 MW of capacity and roughly 11.6 exahash per second. The deck reports power cost at about 2.8 cents per kilowatt-hour and says the site is also in active negotiations for HPC leases. That makes the mine a source of current production and a potential conversion asset, rather than the full explanation for the company's valuation.
The financial statements show the pressure still attached to that base. Cipher reported $24.8 million of bitcoin-mining revenue for the quarter, a $267.5 million net loss and $6.0 billion of total debt at June 30. Cash was $831.8 million, while restricted project-level cash was $3.7 billion.
