Can Cipher Digital Stock Double From Here?
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Cipher Digital (CIFR) stock closed at $7.11, and whether it can double from there depends on its new data center business starting to pay rent on schedule. A double would not be unusual here: in four of the five calendar years from 2021 to 2025, the stock rose 100% or more from one close to a later close in the same year. Its highest close of the last three years, $29.18 on June 18, 2026, is 310.4% above the latest close. So what is Cipher building, and has any of it started paying?
Cipher Digital Has Leased Three Data Center Campuses
Cipher Digital is shifting its focus from bitcoin mining to building data centers for technology companies, and Odessa is now its last operating bitcoin mining site. During the November 2, 2026 call, management said its three data center campuses, totaling 700 gross megawatts, are nearing completion and all leased. Those agreements carry an average lease term of 17.3 years and represent $16.6 billion of contracted revenue.
The first of that money has arrived. Cipher recognized its initial lease revenue from these data centers at the Black Pearl campus in fiscal Q3 2026. The company also amended its Barber Lake lease, doubling the base term from 10 to 20 years. That extension lifted contracted revenue at the site to about $9.1 billion, and management expects the data halls there to come online from the fourth quarter of 2026 through the first quarter of 2027.
How Big Are Cipher Digital’s Signed Leases?
These signed leases are far larger than the business Cipher currently runs. Management projects about $864 million of average annual net operating income from the three campuses, though that figure remains a projection rather than a recorded result. Over its last twelve months, Cipher reported total revenue of $146 million, down 29.2% from the year before.
The stock has fallen hard too. Over the past year it lost 63.8%, while the S&P 500 returned 12.8%. Cipher’s total debt also equals 190.4% of its market value, against 19.5% for the S&P 500. With the leases signed, the steep fall and heavy debt put the focus on whether Cipher can finish the buildings and pay for them.
Can Cipher Digital Keep Rent Ahead Of Building Costs?
So far, management says, tenants have been willing to raise rent in line with higher financing costs. Barber Lake shows a related case, where extra rent covered higher construction costs. Tenant requirements changed during construction there, leading to about $409 million of change orders. Management said Cipher chose to fund that work itself, giving up near-term reimbursement in exchange for the longer lease and its extra rent. Management said the cost to Cipher rose to $13 million per IT megawatt, but the extra rent restored the project’s average yield on cost, its yearly income against the cost to build, to about 15%.
Costs are not done rising, though. Management expects the pressure on labor costs to continue in 2027. Delivery matters just as much. During the November 2 call, management said Cipher had just delivered a ready-for-service notice at Barber Lake for its first 51 megawatts.
Cipher Digital is expected to report its next results in February 2027. Its revenue from data center leases, which the company now reports separately, is the figure to watch.
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