Cipher Digital Suffers $47M Loss Selling Bitcoin for AI Data Center
Cipher Digital, a Bitcoin miner, has faced significant financial challenges in recent months. According to its latest filing, the company sold 1,619 Bitcoin at a price of $123.4 million, resulting in a realized loss of $47.7 million.
The sale is part of Cipher's efforts to stay liquid and fund its pivot into AI data centers. The company has been investing heavily in its Black Pearl project, which will provide power access and infrastructure for AI operations.
Cipher's quarterly mining revenue fell from $43.6 million a year earlier to $23.5 million in the second quarter, with the majority of the loss coming from Bitcoin sales. The company ended June with 646 Bitcoin worth $37.8 million, but its cash flows were negatively impacted by high interest expenses.
The third quarter will be the first to include the Black Pearl rent period, which will show how much funding pressure has shifted for Cipher and other miners making a similar pivot.