Cipher Digital Stock Drops Amid ERCOT Delays and Revenue Fall

Cipher Digital's stock has fallen 36.2% over the past three months, but it's still up 54.1% over the past year, outperforming the S&P 500's 15.5% gain.

The company is transitioning from Bitcoin mining to leasing data centers to hyperscale tenants and has secured leases with significant revenue potential, expected to produce $793 million of net operating income annually from October 2026 through September 2036.

However, the stock's performance has been impacted by delays in ERCOT's process for approving new grid connections, which affects three of its Texas sites with potentially 2 gigawatts of gross capacity. Revenue also fell to $25 million in the second quarter of 2026 from $35 million in the first.

In past market shocks, Cipher Digital's stock has fallen hard but bounced back quickly, taking a median of about three months to climb back to its pre-shock high after a decline of an average 42% peak to trough. The company's CEO expects future builds to cost more due to labor and equipment inflation.