Cipher Digital shares fell 5.9% after the update, with the transcript pointing to a tougher backdrop for new projects: financing markets are more discerning and building costs are rising. Management says it is adjusting lease pricing to protect returns, but the excerpt provides no updated financial outlook or new-lease pricing to show how those pressures will affect growth.
- Three leased campuses total 700 gross MW and represent $16.6 billion of contracted revenue over the next two decades, or about $864 million of projected average annualized NOI.
- All three campuses remain under construction; first capacity has been delivered at Black Pearl, with additional capacity across the sites expected to come online in phases over the coming months.
- Management cited tighter financing conditions and rising construction costs, and said new leases will be evaluated to ensure returns keep pace with a higher cost of capital.
- Cipher reaffirmed its long-term colocation model, emphasizing contracted cash flows from creditworthy tenants rather than taking on the added financing and pricing risks of providing chips directly.
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