On Wednesday, Cipher Mining Inc. (NASDAQ:CIFR) received an Outperform rating from Macquarie, with a price target set at $6.00. The new rating is based on the company's recent progress and expansion efforts. Cipher Mining has completed the build-out of its wholly-owned Odessa site and announced a series of new sites aimed at supporting Bitcoin (BTC) and High-Performance Computing (HPC) operations.
The company's early sites were joint ventures, but Macquarie points out that the scaled power efficiencies expected from the current and upcoming slate of ERCOT sites are likely to contribute additional value. The analyst firm sees a potential near-term inflection in Cipher Mining's profit and scale, prompting the initiation of coverage with a positive outlook.
Cipher Mining's focus on scaling its operations and the development of its ERCOT sites are key factors in Macquarie's assessment. The firm's outlook is based on the expected benefits from the company's transition to wholly-owned sites, which are anticipated to drive improved power efficiencies and, consequently, profitability.
The $6.00 price target suggests confidence in Cipher Mining's growth trajectory and the potential for increased shareholder value. Macquarie's coverage initiation and the Outperform rating reflect a positive view of Cipher Mining's strategic direction and operational developments.
In other recent news, Cipher Mining has completed several strategic moves. The blockchain technology firm Bitfury Group recently finalized the distribution of approximately 9.6 million shares in Cipher Mining, diversifying the company's shareholder base. Cipher Mining also maintained its Overweight rating from Cantor Fitzgerald, highlighting the firm's advancements in mining and power resource acquisitions.
The company reported mining 151 Bitcoin in August, bringing its total holdings to 2,270 Bitcoin. Cipher Mining also increased its equity offering capacity to $725.7 million through an agreement with financial firms including Cantor Fitzgerald & Co. and BTIG, LLC.
In terms of expansion, Cipher Mining acquired a new 300 MW development site in West Texas for $67.5 million, aiming to increase its portfolio to over 2.5 GW across 10 sites. Despite a net loss of $15 million in the second quarter, the company generated $37 million in revenues.
Analysts from firms such as H.C. Wainwright, Canaccord Genuity, Compass Point, and Needham have expressed positive assessments of the company's growth prospects, highlighting its plans to increase its hash rate to 35 exahashes per second by 2025 and its ventures into High-Performance Computing infrastructure.
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