US crypto mining firm Cipher Mining faced a significant stock drop after releasing 2024 financial results. Despite a rise in revenue, the company saw its operating losses more than double.
Cipher Mining's 2024 financial results
According to the company, its full-year revenue for 2024 increased by 19% to $151 million. However, Cipher Mining's operating losses soared to $43.7 million, more than twice the 2023 figure of $20.1 million.
Expansion strategy and infrastructure development
Cipher Mining reported that its total self-mining hashrate reached approximately 13.5 exahashes per second (EH/s) through upgrades of its site in Odessa, Texas, acquiring another data center with 100 MW capacity, and purchasing additional land near Barber Lake. CEO Tyler Page noted that the first phase of the 'Black Pearl' site is complete, with the second phase on track for activation in Q2. "We had an extremely productive fourth quarter at Cipher, continuing our growth and expansion plans," said Page.
Market reaction and future prospects
Despite the expansion strategy, Cipher (CIFR) shares closed down 17.4% to $4.10. However, after-hours trading saw a slight 2.2% increase to $4.19. Despite the current downturn, shares remain 20% up over the past year.
The company now faces the challenge of adapting to current market volatility and needs to revise its strategy to overcome financial challenges. Investors will be watching upcoming reports from other industry firms like Marathon Digital and Core Scientific.
