Basri Caneri 
Cipher Mining (CIFR), which operates in the crypto mining sector, suffered a sharp drop in value after announcing its financial results for 2024. The doubling of the company’s operational losses caused investors to sell their shares and the share price fell by 17.4%.
Revenues Increased, but Losses Widened
According to Cipher Mining’s financial report for 2024:
- Revenues increased by 19% year-on-year to $151 million.
- In contrast, operating loss widened to $43.7 million from $20.1 million in 2023.
Investors are concerned about rising costs as the company spends heavily to expand its operations in Texas.
- Modernized its facilities in Odessa.
- Acquired a new 100 megawatt data center.
- Acquired 337 acres of new land near Barber Lake.
Cipher CEO Tyler Page announced that the company remains committed to its growth strategy and that its new mining facility called “Black Pearl” will be operational in the second quarter.
Shares Fall to 2024 Low
Following the balance sheet results, Cipher shares fell 17.4% to $4.10.
- It recovered 2.2% to $4.19 in after-hours trading.
- Despite hitting its lowest level this year, the stock is still up 20% in the last 12 months.
However, investors are cautious that the share price could see further pressure if mounting operational losses continue.
Crypto Mining Sector Under Pressure
Following Cipher’s balance sheet, the market’s attention turned to major mining companies such as Marathon Digital (MARA) and Core Scientific (CORZ).
Both companies will release their financial results on February 26th. Given the rising cost of operations and fluctuations in the price of Bitcoin, the overall performance of the mining sector will be critical for investors.
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