Morgan Stanley Stake Sends Cipher Digital Stock Soaring 7.4%

Cipher Digital's stock price surged by 7.4% on Friday to $17.855, following Morgan Stanley's disclosure of a 6.3% beneficial stake in the company.

The stake, worth 26.28 million shares as of June 30, was reported by Morgan Stanley through a Thursday filing with the SEC.

Cipher Digital is currently undergoing an operational transition from bitcoin mining to leasing out AI data centers, which requires significant long-term investment.

The company's revenue for the second quarter dropped by 43% to $24.8 million, generated solely from bitcoin mining, as no HPC lease agreements had started prior to June 30.

Cipher Digital's Chief Executive Tyler Page stated that initial capacity at Black Pearl was brought online sooner than planned, with rental income beginning, while Barber Lake had achieved partial occupancy and Stingray continued to progress as scheduled.