Cipher Digital Shares Fall Friday on Weak Q2 Results and Rising Treasury Yields

Cipher Digital Inc. shares fell on Friday, pressured by a significant miss in second-quarter results and rising U.S. Treasury yields. The Nasdaq rose 0.22%, while the S&P 500 gained 0.47%.

According to Trading Economics data, the 10-year U.S. Treasury yield traded around 4.7% on Friday, continuing to face pressure after a sharp rebound in the previous session, as market concerns grew that government plans to lower borrowing costs may only offer a temporary solution. The 30-year yield climbed to approximately 5.25%, nearly erasing Wednesday's decline following the Treasury Department's announcement of increased bond buybacks.

Earnings and Cost of Capital Add Pressure

For infrastructure developers like Cipher, expanding data center capacity requires substantial capital investment, making investors highly sensitive to shifts in macroeconomic conditions.

The market continues to digest Cipher's second-quarter financial update released on August 4, in which the company reported a quarterly net loss of $267.5 million and declining bitcoin mining revenue, despite accelerated capacity delivery at the Black Pearl facility and securing an option for a 900-megawatt site near San Antonio.

Technical Analysis

CIFR is in a clear medium-term downtrend: shares are 15.9% below the 20-day simple moving average and 27.1% below the 50-day simple moving average, indicating that sellers have controlled price action over the past several weeks.

The stock is also 15.4% below the 200-day simple moving average, meaning even the long-term trendline that typically acts as support is now overhead resistance.

From a structural perspective, the stock formed a swing high in June and a swing low in August, with current prices still digesting the post-peak correction. The longer-term trend remains volatile but intact—CIFR is still up 165.17% over the past 12 months, even after the recent pullback.

Key resistance: $18—a round number also near the 200-day simple moving average area, where rebounds could stall

Key support: $14—a level significant enough that it could be tested if selling continues, with buyers potentially defending a pullback there

CIFR price action: As of Friday's writing, Cipher Digital shares were down 8.98% at $15.66.