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Cipher sells 1,619 Bitcoin at realized loss ahead of AI data center rent

Cipher booked $47.7 million in realized losses and said Black Pearl rent began after June 30, with initial data center capacity delivered in early August.

Reported · Written up by our desk · Market Structure

Bitcoin miner Cipher Digital sold 1,619 Bitcoin for $123.4 million and recorded $47.7 million in realized losses, according to a filing reviewed by CryptoSlate.

The filing showed interest expense of $66.7 million against $24.8 million in mining revenue, with quarterly mining revenue falling from $43.6 million a year earlier. Cipher said the second quarter revenue came entirely from Bitcoin mining at Odessa, and it booked $23.5 million of the realized loss in that quarter.

Cipher’s Black Pearl rent “clock” started after June 30, and the company began delivering initial data center capacity at the beginning of August, two months ahead of the original schedule. Cipher disclosed that rent had commenced by the time it released an Aug. 4 business update, but it did not provide the amount collected or a quarter-by-quarter ramp, making it difficult to compare rent timing against its Bitcoin sales and financing.

Cash use also intensified in the first half, with operations consuming $152 million of cash and Cipher spending $964.3 million on property and equipment. In the same period, net financing activities supplied $2.84 billion, including $129.2 million from at-the-market stock sales, while the third quarter is expected to be the first to include the Black Pearl rent period.

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