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The call emphasized strong execution across leasing, financing, and construction — with three hyperscaler campus leases, a $2.0B project bond, a $200M corporate revolver, a large contracted revenue base ($11.4B) and a multi-gigawatt pipeline. Operational milestones (Barber Lake topping out, Black Pearl retrofit progress), high procurement completion rates, and a substantial liquidity position underpin confidence in delivery. Key negatives include a marked QoQ revenue decline (-41.7%) tied to the planned mining wind-down, elevated leverage (~$5.2B) and higher interest expense (+~78.8%), working capital pressure (accounts payable +~395%), and dependency on ERCOT interconnect outcomes for mid-term pipeline conversion. On balance the company highlighted numerous execution and financing wins that materially de-risk development and create visible contracted cash flows, while acknowledging specific near-term revenue and financing headwinds.
Cipher guided that it now has 907 MW of operating and contracted capacity (207 MW Odessa mining, 300 MW Barber Lake, 300 MW Black Pearl, 100 MW new lease) and roughly 4.2 GW total portfolio grid power including ~3.3 GW of pipeline, with ~ $11.4B of contracted revenue across 10–15 year base leases and an expected ~$787M average annualized contracted NOI from Oct 2026–Sep 2036 (rising to ~ $892M in 2035). Timelines: Barber Lake (207 MW) topped out in 127 days, is 100% design complete with ~99% of equipment secured, had >1,100 daily workers in April (1,400 expected in May) and >1M cumulative labor hours with zero lost-time incidents; Black Pearl completed demolition in one month, broke ground on Phase II three months after design kickoff, with ~93% of Phase I and ~80% of Phase II equipment secured and funded by a $2.0B bond at 6.125% (oversubscribed, ~$233M reimbursed). Near-term pipeline timing: Stingray is 100 MW targeting energization in Q4 2026; Reveille is 70 MW (ERCOT interconnection approved) targeting Q3 2027; Ulysses is 200 MW in PJM targeting Q4 2027; McLennan, Mikeska and Colchis are tracking for 2028 (ERCOT batch 0), and 2028–29 sites total ~2.5 GW with an additional 500 MW upside at Barber Lake beyond 2030. Financial and operating metrics: Q1 revenue $35M (vs $60M Q4), GAAP net loss $114M ($0.28/share) vs $734M ($1.85), cost of revenue $18M, compensation $35M, headcount up to 70 (from 50) with hiring to ≈85; Odessa is running 207 MW, ~11.6 EH/s at ~17.2 J/TH and mined ~346 BTC in Q1 under a ~$0.028/kWh PPA; balance sheet/liquidity includes ~$715M cash, ~$76M in Bitcoin, ~$3.5B restricted cash, a $200M undrawn revolver, total principal outstanding ≈$5.2B and borrowings ≈$4.7B.
Executed a 15-year campus lease with an investment-grade hyperscale tenant, representing the third consecutive long-term hyperscaler lease in ~8 months; contributes to a contracted portfolio anchored by world-class counterparties.
907 megawatts of operating and contracted gross capacity today, backed by approximately $11.4 billion in contracted revenue across base lease terms (10–15 years); contracted average annualized NOI expected at ~$787 million from Oct 2026–Sep 2036 and ~$892 million in 2035.
Approximately 3.3 gigawatts of additional pipeline grid capacity (4.2 gigawatts total portfolio across operating, contracted and pipeline), providing long runway for growth and competitive advantage in site sourcing.
Completed a $2.0 billion senior secured bond at a 6.125% coupon for Black Pearl, which was significantly oversubscribed and reimbursed Cipher ~ $233 million for prior equity contributions; bonds trading at a premium to par signaling investor confidence.
Closed a $200 million 4-year corporate revolver (undrawn at quarter end) with a syndicate including Morgan Stanley, Goldman Sachs, JPMorgan and others, improving corporate liquidity and reflecting institutional lender confidence.
Barber Lake topped out (approx. 800,000 sq ft) to deliver 207 MW IT load; 127 days from first column to last beam; >1,100 daily active workers in April ( >1,400 expected in May); >1 million cumulative labor hours with 0 lost-time incidents; ~99% of equipment secured and design 100% complete.
Demolition of legacy Bitcoin mining infrastructure completed quickly; Phase I retrofit progressing with ~93% of Phase I equipment secured and Phase II ~80% secured; both phases tracking toward contractual early access and rack-ready dates.
Stingray (Andrews County) mobilized in Q1 with 100 MW gross capacity fully approved and target energization in Q4 2026; Reveille (70 MW, ERCOT-approved) and Ulysses (200 MW, PJM-approved) are in advanced discussions and targeted for 2027 energization windows.
Odessa operating 207 MW, producing ~11.6 EH/s at ~17.2 J/TH efficiency and mined ~346 BTC in Q1; fixed-price PPA at ~$0.028/kWh positions Odessa among the lowest-cost miners and continues to generate healthy cash flow while platform refocuses on HPC.
Unrestricted cash and equivalents of $715 million and Bitcoin holdings of $76 million; restricted cash ~ $3.5 billion ring-fenced for construction; total assets rose to $6.4 billion from $4.3 billion quarter-over-quarter (+~48.8%), and property & equipment net grew to ~$1.3 billion from $633 million (+~105.6%).
GAAP net loss narrowed to $114 million in Q1 from a $734 million loss in Q4, an improvement of ~$620 million (loss reduction of ~84.5%), driven by planned mining wind-down and fewer one-time noncash charges in the quarter.
Good day, and thank you for standing by. Welcome to Cipher Digital's business update for the first quarter of 2026. [Operator Instructions] Please be advised, today's conference is being recorded. I would now like to hand the conference over to your speaker today, Drew Armstrong. Please go ahead.
Good morning, and thank you for joining us on this conference call to address Cipher Digital's business update for the first quarter of 2026. Joining me on the call today are Tyler Page, Chief Executive Officer; and Greg Mumford, Chief Financial Officer. Please note that our press release and presentation can be found on the Investor Relations section of the company's website where this conference call will also be simultaneously webcast. Please also note that this conference call is the property of Cipher Digital, and any taping or other reproduction is expressly prohibited without prior consent. Before we start, I'd like to remind you that the following discussion as well as our press release and presentation contain forward-looking statements. These statements include, but are not limited to, Cipher's financial outlook, business plans and objectives, and other future events and developments, including statements about the market potential of our business operations, potential competition, and our goals and strategies. Forward-looking statements and risks in this conference call, including responses to your questions, are based on current expectations as of today, and Cipher assumes no obligation to update or revise them, whether as a result of new developments or otherwise, exce...