Cipher Digital Inc.

Worth knowing

• Paying shareholders without free cash flow. Paid out $121M over the 3 fiscal years to 2025 with -$1.0B of free cash flow.

  Cipher Digital returned $121M in buybacks and dividends over three fiscal years while its free cash flow totalled -$1.0B. The money came from its cash pile or from borrowing.

• Shareholders being diluted. Shares outstanding up 68% from December 2022 to August 2026.

  Cipher Digital had 68% more shares at August 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Cipher Digital had 68% more shares at August 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

• Stock pay outran buybacks. Stock-based pay expense $133M vs $121M spent repurchasing shares over the 3 fiscal years to 2025.

  Over three fiscal years Cipher Digital recorded $133M of stock-based pay expense and spent $121M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Cipher Digital recorded $133M of stock-based pay expense and spent $121M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

• Much more borrowing than peers. Debt is 10.0× equity vs a peer median of 0.2×.Debt is 10.0× equity vs peers 0.2×.

  Debt is 10.0× shareholders' equity, against a peer median of 0.2×, among the highest 10% of its peer group.Debt is 10.0× shareholders' equity, vs peers 0.2×, among the highest 10% of its peer group.