Cipher Digital Inc. (CIFR)

Cipher Digital Inc. (formerly Cipher Mining, renamed in February 2026) develops and operates industrial-scale data centers for next-generation computing. It has evolved from a pure-play bitcoin miner into a vertically integrated data center platform covering land and power origination, grid interconnection, site development, design and construction, and ongoing facility operations. Its strategy increasingly centers on building data centers to lease to hyperscalers and other high-performance computing (HPC) customers under long-term contracts, while keeping bitcoin mining as an interim or complementary use of power. Through the end of 2025, all of its revenue came from bitcoin mining, but its 2025 HPC leases are expected to make up a significant portion of future revenue.

The company's portfolio totals 4.2 GW of capacity across 10 sites at various stages of interconnection. It is developing 600 MW of HPC capacity at two Texas sites. Barber Lake, near Colorado City, is a 300 MW facility leased to Fluidstack, with Google backstopping certain Fluidstack obligations. Black Pearl, near Wink, is a 300 MW facility under a 15-year lease with Amazon Web Services. It also operates the 207 MW Odessa bitcoin mining facility in Texas, powered under a take-or-pay agreement with Luminant at about 2.8 c/kWh through at least July 2027. Bitcoin mining at Black Pearl ceased in February 2026, and in February 2026 the company sold its 49% interests in three 40 MW WindHQ joint-venture mining sites to Canaan U.S. Inc. The remaining pipeline of about 3.4 GW includes the Colchis (1 GW, West Texas), Ulysses (200 MW, Ohio), McLennan, Mikeska and Milsing (up to 500 MW each), Stingray (up to 100 MW) and Reveille (up to 70 MW) sites, which it expects to energize between 2026 and 2030.

Its customers are hyperscalers and other HPC tenants, with leases structured as gross modified HPC leases subject to service level agreements. Bitcoin mining revenue comes from contributing hashrate to mining pools in exchange for block rewards and transaction fees. The sites are in the ERCOT market in Texas and, in Ohio, the PJM market.

The company uses a power-first approach to sourcing sites. It acquires options to purchase, purchases or leases property, advances interconnection, and develops electrical infrastructure. In-house teams manage design, construction and operations, working with contractors and equipment suppliers. Quanta Services is a key engineering, construction and procurement partner for Black Pearl and Barber Lake. Construction emphasizes off-site manufacturing, modular build and early procurement of long-lead equipment. The Odessa Facility received the Uptime Institute's Management and Operations Stamp of Approval in 2024, and the company has developed proprietary data center management software. It funds development mainly with project-level, non-recourse or limited-recourse financing alongside long-term leases. It notes significant competition for power capacity and energized facilities.