Cipher Digital Posts $114 Million First-Quarter Net Loss as AI Data Center Shift Accelerates
Summary
- Cipher Digital said it posted a $114 million net loss in the first quarter, widening from a year earlier.
- It said both Bitcoin mining revenue and the value of its Bitcoin holdings declined during the period.
- The company said it is pushing ahead with an HPC infrastructure shift built around AI and cloud infrastructure, an AI data center campus, and a credit facility of up to $200 million.
Forecast Trend Report by Period
Bitcoin miner Cipher Digital more than doubled its net loss in the first quarter as mining revenue declined and the company accelerated its shift toward artificial intelligence infrastructure.
Cipher Digital posted a first-quarter net loss of $114 million, compared with a $39 million loss a year earlier, according to crypto media outlet The Block on May 5.
Bitcoin mining revenue fell to $35 million from $49 million a year earlier. The value of the company's Bitcoin holdings also dropped to $76 million from $125 million.
The company is moving away from a mining-focused business model and pushing into AI and cloud infrastructure. Its strategy is to use its power and data center assets to meet demand for high-performance computing, or HPC.
Chief Executive Officer Tyler Page said Cipher Digital signed a lease for its third AI data center campus with an investment-grade hyperscale customer during the first quarter. He added that the company aims to establish the site as a platform for future HPC development.
Cipher Digital also said it had secured a credit facility of up to $200 million and that its key data center projects remain on schedule.
The move reflects a broader trend among mining companies expanding into AI infrastructure to reduce earnings volatility.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
