Cipher Digital extends Barber Lake lease to 20 years

Cipher Digital announced its third quarter 2026 results on November 2, 2026, along with an update on operations and strategy. Third quarter revenue was $27 million and Adjusted EBITDA was negative $10 million. The company said it recognized its first HPC lease revenue after rent commenced at Black Pearl.

The company said it expanded the Barber Lake lease to a 20-year term. The previously announced amendment adds a second 10-year term directly with an AI lab and adds approximately $5.2 billion of incremental rent. It also sets a phased delivery schedule aligned with the tenant's compute deployment. The company said construction remains on track to deliver against the amended schedule.

Cipher Digital completed an $850 million offering of 0.000% convertible senior notes due 2032 and used the proceeds to fund an additional equity investment in Barber Lake tied to the lease expansion. Capped call transactions raised the effective conversion price to $28.35 per share. The company also equitized approximately $165.9 million of its 1.750% convertible notes due 2030, retiring more than 90% of those notes.

Through ERCOT's Batch Zero process, the company received a conditional base load classification for 1 GW at Colchis and conditional studied load classifications for an additional 1.6 GW, with Provisional Controllable Load Resource designations. It began developing lateral natural gas pipelines to support up to 2.5 GW of on-site generation and acquired Horizon, a 70 MW site in Texas that the company expects to energize in 2029.

Cipher Digital said its development pipeline totals approximately 5.9 GW. Chief Executive Officer Tyler Page said the company is investing earlier in every project and advancing design work before committing to new leases.