Cipher Mining stock initiated with Market Outperform rating by Citizens

Investing.com - Cipher Mining (NASDAQ:CIFR) received its first coverage from Citizens on Wednesday, with the firm assigning a Market Outperform rating and a $30.00 price target. The stock currently trades at $14.58, suggesting significant upside potential despite experiencing a 16.11% decline over the past week. InvestingPro data shows the broader analyst consensus is also bullish with targets ranging from $12 to $50.

Citizens analyst Greg Miller highlighted Cipher’s strategic pivot from bitcoin mining to maximizing its 3.8 gigawatt (GW) power capacity pipeline, which is located entirely in Texas. This power capacity could potentially translate to a "$90.00+ stock price over time," according to the research note. While InvestingPro analysis indicates the stock is currently trading slightly above its Fair Value, the company’s financial health score is rated as "FAIR" with particularly strong momentum metrics.

The firm emphasized that Cipher remains among the few companies with capacity planned for 2026, positioning it advantageously in the high-performance computing (HPC) market.

Citizens expects Cipher’s HPC inventory to "rival that of some of the major projects in the market like Stargate with 3 GWs planned," suggesting the company could become a significant player in the data center space.

The research note also indicated that Cipher is poised to offer "HPC capacity on an industrial scale," with its substantial power resources potentially establishing the company as a major data center operator.

In other recent news, Cipher Mining Inc. announced that its subsidiary, Cipher Compute LLC, has completed a private offering of $1.4 billion in senior secured notes due 2030. The notes, priced at 7.125% and issued at par, were sold to qualified institutional buyers in the United States and non-U.S. persons. The proceeds from this offering are intended to finance the construction of the Barber Lake Facility, a high-performance computing data center in Texas. Despite this significant financial move, Cipher Mining’s stock experienced a notable drop of 9.1% following the announcement. This development comes amid a broader downturn in cryptocurrency-related stocks, as Bitcoin’s value fell below the $100,000 mark. Cipher Mining led the losses among major crypto companies with a 13% decline. Other companies such as Riot Platforms, Hut 8 Corp, and CleanSpark also faced substantial stock declines. This series of events reflects the volatile nature of the cryptocurrency market and its impact on related stocks.

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