Cipher Digital Stock Drops 16% After Wider Q2 Losses, Bernstein Sticks With Bullish Call

Cipher Digital shares dropped 15.7% on Tuesday, closing at $20.38, after the bitcoin miner reported a steep jump in quarterly losses. The company posted a net loss of $267.5 million for the second quarter, more than five times what it lost a year earlier. Revenue also slipped to $24.8 million, down from $43.6 million in the same period last year.

CEO Points To Data Center Progress

Despite the loss, Cipher said it delivered its first Black Pearl data center capacity in early August, about two months ahead of schedule. CEO Tyler Page said the company tapped capital markets to fund a new lease, secured an option on another site, and delivered capacity early to its tenant.

Bernstein Keeps Outperform Rating

Bernstein analysts held their Outperform rating and $32 price target, pointing to steady progress across Cipher’s three contracted data center projects, expected to be fully delivered by the first half of 2027.

Texas Power Audit Seen As Opportunity

Bernstein also flagged Texas Governor Greg Abbott’s directive ordering ERCOT and state regulators to audit data center projects in the interconnection queue. Analysts said the audit could delay new competitors while benefiting established players like Cipher by easing grid congestion.