Analysts have raised Cipher Mining's price target from $7.91 to $11.38, citing strong value creation potential from AI hosting site re-designations, sector-wide validation of mining infrastructure amid rising AI demand, and positive peer transaction signals.
Analyst Commentary
- Bullish analysts cite Cipher's Barber Lake and Black Pearl Phase 2 sites being re-designated for AI hosting as creating significant short- to mid-term value opportunities.
- The growing AI infrastructure demand is increasing the attractiveness of powered land assets, bolstering Cipher’s strategic positioning.
- The recent acquisition of Core Scientific by CoreWeave is seen as sector-wide validation of the value of mining infrastructure and a positive read-through for Cipher’s valuation.
- Market peers’ transaction activity signals broader industry confidence in large-scale powered land and diversified compute capabilities, lifting sentiment toward Cipher.
- Some analysts remain cautious, initiating with a Hold rating, suggesting balanced risk-reward given the current share price and operational outlook.
What's in the News
- Cipher Mining signed a 10-year HPC colocation agreement with Fluidstack, delivering up to 168 MW of IT load with expansion potential and $7 billion in possible contract revenue.
- Google is backstopping $1.4 billion of Fluidstack's lease obligations, supporting project-related debt financing and receiving warrants for approximately 5.4% equity in Cipher.
- August and July BTC mining production reached 241 and 214, respectively, with operating hash rate increasing from 20.4 EH/s to 23.0 EH/s and mining rigs deployed rising from roughly 111,500 to 115,000.
- Cipher Mining was dropped from multiple Russell growth benchmark indices, including the Microcap, Small Cap Comp, 2500, 2000, 3000, and 3000E indices.
Valuation Changes
Summary of Valuation Changes for Cipher Mining
- The Consensus Analyst Price Target has significantly risen from $7.91 to $11.38.
- The Consensus Revenue Growth forecasts for Cipher Mining has significantly risen from 63.6% per annum to 75.9% per annum.
- The Future P/E for Cipher Mining has significantly risen from 55.23x to 65.02x.
Disclaimer
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