Cipher Digital Stock Slumps Amid Sector-Wide Selloff and Rising Treasury Yields

Cipher Digital stock fell more than 8% in a sector-wide selloff driven by higher Treasury yields and concerns over long-duration data center projects.

The company's revenue is declining as it transitions from bitcoin mining to high-performance computing data centers, but the new revenue hasn't fully ramped up yet. Cipher reported revenue of about $25 million and adjusted EBITDA came in negative at $30 million for Q2.

Despite delivering its first data center capacity ahead of schedule at the Black Pearl site, investor focus remains on the company's near-term losses and execution risk. Regulators in Texas have also raised questions about data center interconnections, adding to sector uncertainty.