Executive Summary

Q3 was “truly transformative,” with the pivot to HPC solidified by a 15‑year, ~$5.5B AWS campus lease for 300 MW (rent starts Aug 2026) and a 10‑year Barber Lake lease with Fluidstack backstopped by Google’s $1.4B commitment .
Revenue surged to $71.7M (+65% QoQ) and GAAP net loss narrowed to $3.3M; non‑GAAP adjusted earnings rose to $40.7M ($0.10/diluted share), driven by higher BTC price and Black Pearl’s first full quarter of production .
Self‑mining hashrate ended the quarter at ~23.6 EH/s, slightly above prior guidance (~23.5 EH/s), with fleet efficiency improving to ~16.8 J/TH; all‑in electricity cost per BTC rose to $34,189 amid higher network hashrate and front‑of‑meter power at Black Pearl .
Balance sheet strengthened materially: cash and equivalents reached $1.207B driven by the upsized $1.3B 0% 2031 converts (effective conversion price lifted to ~$23.32 via capped calls) and subsequent pricing of $1.4B 7.125% senior secured notes to fund Barber Lake construction .

What Went Well and What Went Wrong

What Went Well

Landmark hyperscaler win: “We’ve executed a second landmark HPC transaction, this time with Amazon Web Services… 300 megawatts… approximately $5.5 billion in contract revenue” .
Strategic pipeline expansion: Secured majority ownership in 1 GW “Colchis” site with a fully executed Direct Connect Agreement with AEP, targeted energization in 2028 .
Operational execution: “We exceeded our previous hash rate projections and achieved a total self‑mining hash rate of approximately 23.6 exahash per second… fleet efficiency ~16.8 J/TH” .

What Went Wrong

Power and cost headwinds: All‑in electricity cost per BTC increased to $34,189 QoQ due to network hashrate and front‑of‑meter Black Pearl power, pressuring unit economics .
High depreciation burden: D&A hit ~$59.5M in Q3, reflecting Black Pearl assets placed into service and prior Odessa upgrades, compressing GAAP results despite revenue growth .
Non‑GAAP/GAAP reconciliation noise: Changes in fair value (warrant liability +$31.9M gain; power PPA −$9.0M) added volatility to reported GAAP earnings and operating line items .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$48.959	$43.565	$71.707
GAAP Net Income ($USD Millions)	$(38.975)	$(45.781)	$(3.283)
GAAP Diluted EPS ($USD)	$(0.11)	$(0.12)	$(0.01)
Adjusted Earnings (Non‑GAAP, $USD Millions)	$6.138	$30.349	$40.728
Adjusted EPS (Non‑GAAP, $USD)	$0.02	$0.08	$0.10

Segment breakdown: Company reports one operating segment (Bitcoin Mining) .

KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
End‑of‑Period Self‑Mining Hashrate (EH/s)	~13.5	~16.8	~23.6
Fleet Efficiency (J/TH)	18.9	~20.8	~16.8
BTC Mined (Wholly‑Owned, units)	—	434	629
BTC Self‑Mined (incl. JV, units)	—	—	~689 (incl. JV sites)
All‑in Electricity Cost per BTC ($)	$23,379	$27,324	$34,189
Cash & Cash Equivalents ($USD Millions)	$23.173	$62.704	$1,207.440

Note: Q3 BTC mined differs between wholly‑owned (629) versus “self‑mined” including JV (~689); management quantified site‑level totals in the call vs. presentation .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
AWS Campus Lease Capacity & Timing	2026	N/A	300 MW delivered in two phases (start Jul 2026; complete Q4 2026); rent commences Aug 2026	Raised (new formal lease)
Barber Lake (Fluidstack/Google) Rent Start	2026	“Tenant interest” ongoing (Q2)	168 IT MW; rent commences Oct 2026; Google backstop $1.4B	Raised (finalized lease)
Self‑Mining Hashrate Target	Q3 2025	~23.5 EH/s expected	~23.6 EH/s actual	Beat
Pipeline Capacity	2025+	~2.6 GW (Q2)	~3.2 GW (Q3)	Raised

No formal financial guidance (revenue, margins, tax) was issued; operational timelines and capacity plans were updated .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
AI/HPC Strategy	Q1: JV financing partner at Barber Lake; site energized and ready . Q2: Black Pearl Phase II designed to bridge BTC mining and HPC .	AWS 15‑year 300 MW lease; Fluidstack/Google Barber Lake 168 IT MW backstopped by Google .	Accelerating; Tier‑1 hyperscaler validation.
Financing & Capital Structure	Q2: $172.5M 2030 converts at 1.75% .	Q3: $1.3B 2031 0% converts (effective conversion price ~$23.32); later priced $1.4B 7.125% secured notes for Barber Lake .	Materially strengthened liquidity.
Supply Chain/Long‑Lead Items	Q1–Q2: Substations, transformers secured for Black Pearl/Stingray .	“Over 85% of Barber Lake equipment secured”; confident in aggressive timelines .	Execution confidence improving.
ERCOT/AEP Interconnects	Q2: approvals for Stingray/Reveille; interim FEAs at certain sites .	Colchis 1 GW DCA with AEP; energization targeted 2028; ERCOT final review in parallel .	Pipeline quality/scale up.
Bitcoin Mining Ops	Q1: ramp to ~16 EH/s in Q2; Black Pearl phase I ahead of schedule . Q2: ~16.8 EH/s; cost per BTC $27,324 .	~23.6 EH/s; cost per BTC $34,189; Odessa PPA runs through Jul 2027 .	Higher scale; unit costs elevated.
Treasury Management	Q1: active hedging/OTC, deliverable forwards .	Held ~1,500 BTC; disciplined treasury management reiterated .	Stable policy, larger base.

Management Commentary

“Partnering directly with one of the largest… underscores Cypher’s emergence as a trusted leader… confirms our full‑scale transformation into an HPC data center developer.” — Tyler Page, CEO .
“Under the agreement, we contracted 300 MW… approximately $5.5 billion in contract revenue… phases beginning in July 2026… rent commencing in August 2026.” — Tyler Page .
“Construction is already underway… on track to deliver the full 168 megawatts of critical IT capacity by September 30, 2026.” — Tyler Page on Barber Lake (Fluidstack/Google) .
“This was the largest digital infrastructure convertible issuance to date… increased the effective conversion price to approximately $23.32 per share.” — Greg Mumford, CFO .

Q&A Highlights

AWS lease execution and design: First 150 MW recut quickly; phase two optimizing speed vs. highest critical IT load; cost per critical MW expected in line with Barber Lake .
Financing approach: Majority funded with project/construction debt; equity portion supported by upsized converts; multiple structures under evaluation .
ERCOT/interconnect timing: Colchis construction advancing with AEP ahead of final ERCOT approval; interim FEAs signed for certain sites; confident in timelines .
Barber Lake optionality: 56 MW remaining may be leased or used for own GPUs; lease rates rising; “spoiled for choice” given demand; risk‑adjusted returns drive decision .
Colchis capex per MW: Expect costs in line with prior builds (~$9–$11M per critical IT MW) subject to inflation and supply chain .
Black Pearl conversion timeline: Confidence high given quality of initial 150 MW build; phase two timeline supported by procurement/supply chain planning .

Estimates Context

Wall Street consensus estimates (S&P Global) were unavailable for CIFR this quarter; therefore, formal beat/miss analysis versus consensus could not be performed. In lieu of EPS/revenue consensus comparisons, performance was evaluated against prior internal targets (e.g., hashrate guidance → ~23.6 EH/s actual vs. ~23.5 EH/s expected) .

Key Takeaways for Investors

Hyperscaler validation and multi‑year revenue visibility: The AWS lease (~$5.5B, rent from Aug 2026) plus Barber Lake (Fluidstack/Google, ~$3.0B min contracted revenue) materially de‑risks HPC strategy and underpins long‑term contracted cash flows .
Liquidity and funding capacity: $1.207B cash and 0% 2031 converts (effective conversion price ~$23.32) provide runway to deliver contracted HPC sites without additional equity, complemented by $1.4B secured notes for Barber Lake .
Execution edge: On‑time/on‑budget delivery at five data centers and rapid AWS phase one conversion at Black Pearl should act as a key differentiator amid industry supply chain and interconnect constraints .
Bitcoin optionality: Odessa’s fixed‑price PPA through July 2027 supports attractive BTC mining economics, giving flexibility while HPC ramps .
Near‑term watch items: Unit power costs (front‑of‑meter sites), D&A drag from new assets, PPA mark‑to‑market variability, and timely HPC construction milestones (Barber Lake/AWS) .
Medium‑term catalysts: Colchis (1 GW) tenant signings, further site approvals (Stingray/Reveille/three “M” sites), incremental hyperscaler leases, and clarity on Barber Lake’s 56 MW optionality .
Stock narrative: Transition from pure BTC miner to diversified digital infrastructure/HPC developer with Tier‑1 counterparties; continued delivery on HPC timelines is likely to drive multiple expansion.

Appendix: Other Relevant Press Releases in Q3 2025

September Operational Update: Month‑end EH/s 23.6; Fleet efficiency 16.8 J/TH; BTC held ~1,500 .
Proposed/Priced Barber Lake Notes: $1.4B 7.125% senior secured notes due 2030 to finance Barber Lake construction .

Cipher Mining Inc. (CIFR)·Q3 2025 Earnings Summary