Cipher Mining Shares Plummet 17% Despite Revenue Boost
1min read Cipher Mining shares plummeted by 17% on Feb. 25, following the release of its full-year 2024 results, which showed a significant increase in operating losses. The U.S.-based crypto mining firm reported a nearly 19% year-on-year increase in revenues to $151 million, but its operating losses more than doubled to $43.7 million compared to the previous year.
The company's expansion plans, which included increasing its self-mining hashrate and acquiring new data center sites, contributed to the mounting losses. Cipher Mining CEO Tyler Page stated that the firm had made significant progress in its growth and expansion plans during the fourth quarter. However, these developments did not appease shareholders, as Cipher's stock price closed down 17.4% to $4.10 on Feb. 25.
Cipher Mining's stock experienced a slight rebound in after-hours trading, rising 2.2% to $4.19. Despite the recent decline, the stock remains up around 20% over the past 12 months. The company's fourth-quarter results showed a significant improvement, with revenues up 75% from the previous quarter and a profit of $17 million, compared to a $91.4 million operating loss in Q3 2024.
Cipher Mining's peers, Marathon Digital (MARA) and Core Scientific (CORZ), are scheduled to report their earnings on Feb. 26. As the crypto mining industry continues to evolve, investors will be closely watching the performance of these companies and their strategies for navigating the competitive landscape.
