Cipher Digital stock tanked 15% after Q2 results landed well below expectations. Revenue came in at $24.84 million when analysts had penciled in $32.52 million. The miss stung, but it wasn't the full story.
The bigger hit came from a $150.5 million non-cash warrant remeasurement loss that ballooned the quarterly net loss to $268 million, or $0.65 per share. Wall Street had expected a $0.23 per share loss. The company was mining less Bitcoin during the quarter as it shifted resources toward its high-performance computing data center push, which dragged revenue down from $35 million in Q1.
Here's where it gets interesting. Despite the stumble, analysts aren't backing off. The Street maintains a Strong Buy consensus with an average 12-month price target of $31.80, suggesting roughly 56% upside from where the stock landed after the selloff. Management also flagged real progress on the business front: Black Pearl, the company's flagship data center campus, hit its first phase two months ahead of schedule and is already pulling in rental income. Construction on the remaining Phase 1 continues as planned.
This article is informational only and should not be construed as financial advice. Past performance and analyst ratings do not guarantee future results.
