Cipher Digital (CIFR) saw its stock tumble about 19% on Wednesday, Nov. 4, after Democrat Gina Hinojosa won the Texas governor’s race and campaigned for a moratorium on new data‑center projects. The decline took the share price from roughly $6.60 in early trade to as low as $6.18 by midday, according to FinancialContent’s market data. Traders on X highlighted the rapid reversal, noting the stock had risen about 18% the day before the election results were known.

Election outcome triggers policy concerns

Hinojosa’s victory was confirmed by the Associated Press and Texas Secretary of State returns, ending incumbent Republican Greg Abbott’s tenure. In her campaign platform, Hinojosa called for an immediate pause on new data‑center construction until the state legislature can establish community‑level protections and potentially end tax incentives for the industry. While the proposal does not ban existing bitcoin mining facilities, it signals a stricter regulatory environment for future high‑performance computing (HPC) projects in Texas, a key hub for crypto mining and AI data centers.

Cipher Digital’s recent earnings and pipeline

In its November 2 earnings release, Cipher Digital reported $26.7 million in quarterly revenue, including $5.852 million from its first HPC lease at the Black Pearl site. Bitcoin mining revenue fell to $20.849 million, down sharply from $71.707 million a year earlier, reflecting a broader shift toward HPC contracts. The company posted a $71.9 million operating loss but posted net income of $31.6 million after a $127.2 million warrant valuation gain. Cipher also disclosed a 5.9 GW development pipeline, with conditional load classifications for 1 GW at Colchis and 1.6 GW elsewhere, and a 20‑year lease at Barber Lake projected to generate about $9.1 billion in revenue.

Riot Platforms’ parallel AI lease

Riot Platforms, a major player in crypto mining, announced a separate 15‑year powered‑land lease for its Corsicana campus, valued at roughly $28 billion. The agreement with an unnamed frontier AI lab covers 910 MW of critical IT capacity and includes annual rent of about $1.8 billion. Riot will provide land and infrastructure, while the tenant will install and operate the computing modules, bearing utility and operating costs. The rollout schedule targets 400 MW by September 2027, an additional 200 MW by January 2028, and the remaining 310 MW by July 2028. This deal underscores the growing emphasis on AI‑driven HPC workloads over traditional Bitcoin mining.

What to watch next

Investors will monitor how quickly the Texas legislature acts on Hinojosa’s proposed moratorium and whether any executive orders are issued to curb data‑center incentives. Cipher Digital’s ability to secure additional HPC leases could offset declining mining revenue, while Riot’s large‑scale AI lease may set a benchmark for future crypto‑related infrastructure contracts. Market participants should also watch broader regulatory signals in Texas, as they could influence the valuation of other mining and HPC firms operating in the state.