Cipher Digital reported its first quarterly revenue from high-performance computing (HPC) leases as the former 
Bitcoin market price and chart-mining-focused company expanded its AI data center operations, according to financial results released on November 2.
The company recorded $26.7 million in third-quarter revenue, down from $71.7 million a year earlier. Bitcoin mining contributed $20.85 million, while HPC leasing generated $5.85 million, according to its SEC-filed financial announcement.
The figures show that AI infrastructure leasing has begun contributing revenue, but mining remained Cipher’s larger revenue source during the quarter ended September 30, 2026.
First AI Lease Revenue Comes From Black Pearl
Cipher said its first HPC lease revenue followed the commencement of rent payments at Black Pearl, one of its Texas data center campuses. The company delivered initial capacity at the facility, with further data halls at Black Pearl and Barber Lake scheduled to come online in phases.
The $5.85 million HPC leasing figure represents recognized revenue during the third quarter, not the total value of future contracts. Its appearance in the financial statements marks a measurable step in Cipher’s transition from Bitcoin mining toward infrastructure leased to large computing customers.
That transition is not yet reflected in higher total revenue. The company’s Bitcoin mining revenue fell from $71.71 million in the third quarter of 2025 to $20.85 million in the latest period, a decline of about 71%.
Cipher also reported adjusted EBITDA of negative $10 million. Adjusted EBITDA is a non-GAAP metric that excludes certain costs and accounting items, so it should not be confused with net profit or operating cash flow.
Barber Lake Contract Extends to 20 Years
Cipher highlighted an amendment to its Barber Lake lease, adding a second 10-year term directly with a major AI laboratory. The expanded arrangement brings total contracted revenue at the site to approximately $9.1 billion, including around $5.2 billion of additional contracted rent.
Those figures describe payments expected over the contractual period. They are not quarterly revenue, cash already received, or a guarantee that every future development and commercial milestone will be achieved.
The amended agreement also establishes phased delivery milestones aligned with the tenant’s computing deployment. Cipher said construction remained on track under the revised schedule.
Development Pipeline Reaches 5.9 Gigawatts
Beyond its existing campuses, Cipher reported a development pipeline of approximately 5.9 gigawatts. It received a conditional base-load classification for one gigawatt at its Colchis site through the Texas grid operator ERCOT’s Batch Zero process, together with conditional classifications covering another 1.6 gigawatts.
The company also began developing natural-gas pipeline connections intended to support up to 2.5 gigawatts of potential on-site generation. It acquired a 70-megawatt Texas site called Horizon, which it expects to energize in 2029.
Grid classifications, planned power generation and development pipelines should not be mistaken for completed, operating facilities. Their commercial value depends on permits, construction, electricity availability, customers and financing.
Bitcoin Miners Diversify Into AI Computing
The shift reflects growing overlap between energy-intensive cryptocurrency mining facilities and large-scale AI computing infrastructure. Both require substantial power and physical facilities, although AI workloads also demand different equipment, networking and service arrangements.
BlockBriefing recently covered Luxor’s $16 million financing for AI compute trading and Galaxy Digital’s expansion into AI data centers, illustrating parallel business models in the digital-asset industry.
Cipher’s latest disclosures provide concrete evidence of that transition: the first recorded HPC rental income, a longer-dated customer contract and a larger prospective power pipeline. Investors must still distinguish realized financial performance from multiyear contract values and planned future capacity.
