Cipher (CIFR) shed 13.5% in intraday trading on December 16, 2025, as broader market sentiment turned negative following a selloff in high-growth AI equities and a sharp drop in Bitcoin's price. The decline marks one of the steepest single-day drops for the company this year.
- Cipher (CIFR) fell 13.5% on December 16, 2025, closing at $6.41
- Bitcoin dropped 7.3% on the same day, contributing to risk-off sentiment
- Market cap loss for CIFR: ~$182 million
- CIFR's Q3 gross margin declined to 56.2% from 58.7% YoY
- R&D expenses reached $17.3 million in Q3 2025
- Botz and Arkk ETFs fell 5.8% and 6.4% respectively
Cipher (CIFR) experienced a significant downturn, closing the session down 13.5% following a wave of profit-taking across AI-focused stocks and a broader crypto market correction. The stock fell from a prior close of $7.42 to $6.41, erasing approximately $182 million in market capitalization. The sell-off coincided with a 7.3% drop in Bitcoin’s value, which triggered broader risk-off behavior in digital asset and tech-related equities. The decline in Cipher reflects growing investor caution after a prolonged rally in artificial intelligence stocks, many of which had seen gains exceeding 200% over the prior 12 months. With several AI firms now reporting slower-than-expected revenue growth and margin pressures emerging, market participants reassessed valuations, leading to a rotation out of speculative tech names. Cipher, which had positioned itself as a mid-tier player in AI infrastructure software, was particularly vulnerable due to its relatively low trading liquidity and limited revenue diversification. The company’s recent quarterly earnings report, released on December 10, 2025, showed a 14% year-over-year revenue increase but a narrower gross margin of 56.2%, down from 58.7% in the same period the prior year. This margin compression, coupled with elevated R&D expenses totaling $17.3 million in the quarter, contributed to investor skepticism despite top-line growth. Market impact was concentrated in small- and mid-cap tech stocks, with the Nasdaq Biotechnology Index and the CBOE NASDAQ-100 Index both registering losses of over 2%. Investors in ETFs with exposure to AI and blockchain themes—such as the Global X Robotics & AI ETF (BOTZ) and the ARK Innovation ETF (ARKK)—also saw their holdings decline by 5.8% and 6.4%, respectively, on the day.