Cipher Shares Sink 16% on Wider Q2 Loss as Bernstein Flags Texas Upside

Cipher Digital, formerly Cipher Mining, is shifting from bitcoin mining toward the development of high-performance computing data centers, leveraging a large portfolio of land and power connections in Texas. The strategy matters because the company is trading volatile mining income for long-dated infrastructure rents tied to AI demand while taking on heavy development and financing costs. Access to the ERCOT grid is therefore central to whether proposed campuses can secure tenants, start construction and generate contracted cash flow.

On Aug. 4, Cipher reported a second-quarter 2026 net loss of $267.5 million for the three months ended June 30, up from $45.8 million a year earlier, as revenue fell to $24.8 million. A $150.5 million warrant-liability revaluation and $66.7 million of interest expense weighed on results, and the shares sank about 16%. Bernstein nevertheless sees potential upside from Texas’ power review. Cipher’s new Apollo site near San Antonio, with capacity of up to 900 MW, has been submitted to ERCOT’s Batch Zero study process.