Cipher extends Barber Lake lease to 20 years in Q3 update

Cipher Digital said a lease amendment at its Barber Lake site in Texas adds a second 10 year term with an unnamed leading artificial intelligence lab, taking the lease to 20 years and total contracted revenue at the site to about 9.1 billion dollars, of which about 5.2 billion dollars is incremental. The company recognised its first high performance computing lease revenue in the quarter, 5.9 million dollars from rent commencement at Black Pearl, inside total third quarter revenue of 26.7 million dollars, down from 71.7 million dollars a year earlier as bitcoin mining revenue fell to 20.8 million dollars. GAAP net income was 31.6 million dollars, carried by a 127.2 million dollar gain on the change in fair value of its warrant liability, while adjusted EBITDA was negative 10.0 million dollars against positive 40.8 million dollars a year earlier. Cipher also completed an 850 million dollar offering of zero coupon convertible notes due 2032 to fund further equity investment in Barber Lake, received a conditional 1 gigawatt base load classification for its Colchis site, and put its total development pipeline at about 5.9 gigawatts.