Cipher Digital shares slide 20% as Texas election signals policy shift

Market volatility hit the stock early in the session, with CIFR shares dropping from a morning high to roughly $6.46 by midday. The sell-off reflects broader industry anxiety regarding Hinojosa’s stated platform, which calls for halting new projects until the state legislature can implement community protections and roll back tax incentives. While her proposal targets new infrastructure rather than existing facilities, the uncertainty has triggered a sharp market reaction.

The decline comes just two days after Cipher Digital reported its quarterly earnings, which highlighted $26.7 million in revenue and the company's first income from high-performance computing leases. Despite the diversification into AI-ready infrastructure, the company still relies heavily on bitcoin mining, which saw revenue drop significantly to $20.8 million from $71.7 million a year prior. Cipher maintains a massive development pipeline of 5.9 GW, including a 1 GW project at Colchis.

Texas regulators had already begun tightening oversight under outgoing Governor Greg Abbott, who previously directed the state’s environmental commission to pause permits for audits. Rivals like Riot are also navigating this changing landscape, recently disclosing a $28 billion lease agreement for its Corsicana campus. As the transition of power approaches, the industry is bracing for a potential legislative session where financial incentives for power-hungry facilities will likely be on the chopping block.