Cipher Mining (NASDAQ:CIFR) used its fourth-quarter and full-year 2025 business update call to outline a major strategic shift away from Bitcoin mining and toward building and operating hyperscale data center infrastructure for high-performance computing (HPC) workloads.
Rebrand and business model shift toward hyperscale compute
Chief Executive Officer Tyler Page said 2025 was “a defining year” in which the company completed what he described as a deliberate transformation from a Bitcoin miner into a digital infrastructure company “purpose-built to deliver hyperscale compute.” Page announced the company is formally rebranding as Cipher Digital, calling the change “not an aspirational shift” but a reflection of work already completed.
Financing activity and project funding
Chief Financial Officer Gregory Mumford said the company broadened its access to capital during the year and focused on fixed-rate, non-recourse, project-level financing that fully funds construction through substantial completion. He framed the approach as a way to reduce reliance on near-term capital markets, isolate project risk, and protect corporate liquidity.
- Barber Lake financing: Mumford said the company raised $1.4 billion in November through five-year senior secured notes priced at 7.125%, followed by a $333 million “tack-on” at the same rate after the lease was upsized, bringing total project debt to $1.73 billion. He also said the company contributed $477 million of additional equity in connection with the financings, and that Barber Lake is fully funded through substantial completion.
- Black Pearl financing: Mumford said that earlier in the month the company completed a $2.0 billion offering of five-year senior secured notes at 6.125%, which he said was significantly oversubscribed with about $13 billion in orders. He said the financing fully funds Black Pearl through substantial completion and included a $233 million reimbursement to Cipher for prior equity contributions.
Mumford said the company ended the quarter with $754 million of “cash equivalents and Bitcoin,” and later detailed year-end unrestricted liquidity of $754 million, including $628 million in cash and $125 million in Bitcoin. He also said the company does not anticipate needing additional equity to fund its “currently contracted developments.”
Project updates: Barber Lake, Black Pearl, and pipeline progress
On execution, Page said Barber Lake construction is well underway, citing progress on foundations, steel, interior work, and utilities. He said the project is on schedule for early access and substantial completion milestones, has secured about 95% of long-lead equipment, and has secured 100% of the necessary workforce across critical construction workstreams, with more than 400 personnel on site on a typical workday.
At Black Pearl, Page said development is on track and that Bitcoin mining decommissioning is being completed “this week.” He added that about 85% of existing infrastructure at Black Pearl is expected to be repurposed for the AWS lease, which he said reduces execution risk and improves capital efficiency.
Page also highlighted the acquisition of Ulysses, a 200 MW site in Ohio with interconnection approvals to participate in the PJM market, expected to energize in 2027. He described it as Cipher’s first acquisition in PJM and said it is well suited for HPC applications.
Reducing exposure to Bitcoin mining and monetizing Bitcoin holdings
As part of the transition, Page said Cipher is repositioning away from Bitcoin mining. He said the company sold its 49% interests in three 340 MW joint venture sites—Alborz, Bear, and Chief—in an all-stock transaction to Canaan, describing the deal as a way to simplify structure while retaining capital-light exposure to potential mining upside through Canaan equity.
Page also said the company liquidated a “substantial portion” of its Bitcoin treasury in the fourth quarter to reinvest in HPC hosting, and that it has been less aggressive in selling recently due to Bitcoin price action. As of February 20, he said Cipher held approximately 1,166 Bitcoin and plans to opportunistically reduce the position over time, likely exiting entirely by the end of 2026.
He added that all Bitcoin mining rigs from Black Pearl have been sold, marked for sale, or redeployed to the company’s last remaining mining site at Odessa. Following these changes, he said the company’s ongoing hash rate will be approximately 11.6 EH/s, driven by Odessa.
Odessa operations, ERCOT policy, and leasing discussions
Odessa remains Cipher’s operating Bitcoin mining site, which Page said benefits from a fixed-price power purchase agreement of roughly $0.028 per kWh through July 2027. He said the company is operating 207 MW there and cited fleet efficiency of about 17.2 J/TH. Page said Cipher may continue mining through PPA expiration but is evaluating a potential conversion to HPC if it reaches a “lucrative deal” with a tenant and can restructure arrangements with its counterparty, Luminant. He stressed the company does not plan to invest additional capex in Bitcoin mining.
On Texas interconnection developments, Page said Cipher hired Lee Bratcher as Head of Policy and Government Affairs to strengthen regulatory expertise. He said the company supports efforts to “clean up” the ERCOT interconnection queue and views potential reforms—such as deposits and batch studies—as favorable for “serious operators and developers.” He said Stingray is fully interconnection approved for 100 MW and on track to energize in the fourth quarter of this year, and that the company is in advanced lease negotiations with a preferred partner. He described Reveille (approved for 70 MW, targeting Q3 2027) as drawing interest from a different mix of potential tenants, including “neoclouds.” Page said Ulysses is also seeing significant interest, with multiple hyperscalers conducting diligence.
During Q&A, Page said the approval process at hyperscalers can take time given the scale of contracts, but he characterized demand as strong and said lease economics remain favorable. He also said the company is investigating behind-the-meter power solutions, particularly in Texas, noting hyperscalers’ increased focus on co-locating generation to secure faster power, though he said timing remains uncertain.
Mumford said fourth-quarter revenue was $60 million, down from the third quarter due to a difficult Bitcoin mining environment and Bitcoin price decline. Cipher reported a GAAP net loss of $734 million, which Mumford said was largely driven by non-cash fair value changes and transition-related impacts, including a $450 million non-cash mark-to-market related to an embedded derivative liability tied to 2031 convertible notes, as well as impairments and write-downs associated with legacy mining assets.
About Cipher Mining (NASDAQ:CIFR)
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.
