TLDR
- Cipher Mining’s stock fell 17.4% following its 2024 earnings report
- Annual revenue increased 19% to $151 million while operating losses doubled to $43.7 million
- The company expanded its mining operations to 13.5 EH/s through facility upgrades and acquisitions
- Q4 showed improvement with $42 million in revenue (up 75% from Q3) and a $17 million profit
- The “Black Pearl” site is on track to launch in Q2 2025 as part of ongoing expansion efforts
Cipher Mining, a US-based cryptocurrency mining company, has experienced a mixed financial performance in 2024, with increasing revenue alongside mounting operational losses that have concerned investors. The company has continued to expand its infrastructure and mining capacity despite the stock price decline.
On February 25, Cipher Mining Inc. released its fourth quarter and full-year 2024 financial results, revealing that while annual revenue grew by nearly 19% year-over-year to $151 million, operating losses more than doubled from $20.1 million in 2023 to $43.7 million in 2024.
This financial report triggered an immediate market reaction, with the company’s stock (CIFR) dropping 17.4% to close at $4.10 on the day of the announcement. Despite this sharp decline, CIFR shares remain approximately 20% higher than they were 12 months ago, though they have reached their lowest point so far in 2025.
The increased losses came as Cipher Mining made major investments in expanding its operations. The company upgraded its facility in Odessa, Texas, which helped boost its total self-mining hashrate to around 13.5 exahashes per second (EH/s). Hashrate is a measure of computing power dedicated to mining cryptocurrency.
In addition to the Odessa upgrades, Cipher acquired another data center site in Texas with 100 megawatts of capacity and purchased 337 acres of land adjacent to its existing site near Barber Lake, also in Texas. These expansion efforts represent part of the company’s broader growth strategy but contributed to the higher operating expenses.
Q4 Shows Signs of Recovery
The fourth quarter results showed some positive signs amid the yearly losses. Cipher reported Q4 revenue of $42 million, which marked a 75% increase from the previous quarter. The company also turned a profit of $17 million in Q4, a major improvement from the $91.4 million operating loss it suffered in the third quarter of 2024.
CEO Tyler Page expressed optimism about the company’s direction in a statement included with the earnings report. “We had an extremely productive fourth quarter at Cipher, as we continued the on-time execution of our growth and expansion plans,” said Page.
Page also highlighted progress on a new site called “Black Pearl,” which he stated is “on track to energize in the second quarter of this year.” This project represents another component of the company’s ongoing expansion efforts.
The company’s pipeline capacity has grown to 2.8 gigawatts, with plans to develop both high-performance computing (HPC) and bitcoin mining data centers. The management team at Cipher Mining remains confident about future growth prospects despite the current financial challenges.
Cipher Mining has positioned itself as a company focused on the development and operation of industrial-scale data centers for bitcoin mining and high-performance computing hosting. The firm aims to become a leading developer in the data center industry while maintaining its position in the bitcoin mining sector.
The cryptocurrency mining industry continues to see both opportunities and challenges. While bitcoin’s price movements affect mining profitability, companies like Cipher Mining are focusing on infrastructure expansion to increase their mining capacity and improve operational efficiency over the long term.
Other major players in the mining and data center industry, including Marathon Digital (MARA) and Core Scientific (CORZ), were scheduled to report their earnings on February 26, potentially providing more context about industry-wide trends.
For investors watching Cipher Mining, the contrast between revenue growth and increasing operational losses presents a complex picture. The company’s ability to continue its expansion plans while addressing the concerns that drove the stock price down will likely be a focus in the coming quarters.
After the market closed on February 25, CIFR experienced a small 2.2% increase in after-hours trading, reaching $4.19. This modest bounce may indicate some investors see the expanded infrastructure as a positive long-term investment despite the current financial results.
The cryptocurrency mining sector remains highly competitive, with firms continually working to upgrade equipment and secure low-cost energy sources to maintain profitability. Cipher Mining’s expanded facilities and increased hashrate position it to potentially benefit from future positive movements in the cryptocurrency market.
As the company moves forward with its Black Pearl project and other expansion initiatives, the balance between growth investments and financial performance will be crucial for rebuilding investor confidence and supporting the stock price.
