Cipher Digital Collects First Rent on Hyperscale Data Center Capacity
Cipher Digital (NASDAQ: CIFR) has reached an important milestone in its shift from Bitcoin mining to artificial intelligence and hyperscale data-center leasing. The company has begun collecting rent on high-performance computing (HPC) capacity at Black Pearl, its industrial data center campus in Texas, two months ahead of schedule. This marks the first time Cipher has collected contracted HPC rent from a hyperscale customer.
The early handover converts part of Cipher's HPC portfolio from a construction promise into an operating asset. CEO Tyler Page stated, 'We are proud to have delivered our first HPC data center capacity ahead of schedule and announce that rent has commenced at the site.'
Cipher's new business model is expected to change its revenue mix, with the company estimating that its 700 MW contracted HPC capacity will generate approximately $11.4 billion of revenue over their base terms and average annualised net operating income (NOI) of about $793 million between October 2026 and September 2036.
The market response was negative despite the early handover, with CIFR falling 15% despite Black Pearl's early HPC rent. The company reported a $267.5 million net loss, including a non-cash remeasurement of its warrant liability of $150.5 million.