Cipher Digital (CIFR 8.64%) stock is posting big gains in Tuesday's trading. The cryptocurrency-mining and artificial intelligence (AI) infrastructure company's share price was up 20.4% as of 3:25 p.m. ET.
Cipher Digital's valuation is soaring today despite the company's weaker-than-expected Q1 results. With today's pop, the stock is now up roughly 46% year to date.
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Cipher's Q1 report was nothing special
With its Q1 update, Cipher reported a loss of $0.28 per share on sales of $34.84 million. The company's loss in the quarter came in $0.02 higher than expected, and sales missed the average Wall Street analyst estimate by $1.65 million. Revenue was down nearly 29% year over year in the period, and the company's net loss expanded to $114.3 million -- up from a loss of roughly $39 million in the prior-year period. Despite the unexciting Q1 performance, there were aspects of the company's latest business update that have investors feeling bullish.
NASDAQ: CIFR
Key Data Points
Cipher is moving ahead with a big shift
Cipher has been shifting its operational focus from being a cryptocurrency mining company to a business that provides AI processing infrastructure. Along with its Q1 report, the company announced that it had secured a $200 million revolving credit facility -- and the new funding source should help the business with its transition.
