H.C. Wainwright maintains Buy on Cipher Mining with $8 target

Wednesday, Cipher Mining (NASDAQ:CIFR) shares dropped despite H.C. Wainwright analyst Mike Colonnese maintaining a Buy rating with an $8.00 price target, well within the analyst consensus range of $7.25 to $10.00. The company reported robust fourth-quarter and full-year 2024 financial results, showcasing impressive revenue growth of 76% year-over-year, and provided third-quarter 2025 guidance with expectations of at least 23 EH/s. Cipher Mining also announced steps to position itself for a potential high-performance computing/artificial intelligence (HPC/AI) deal with a major hyperscaler.

Despite the positive results and guidance, Cipher Mining’s stock fell by 17.4% on the day, contrasted with a 1.35% decline in the Nasdaq. According to InvestingPro data, this decline contributed to a significant 31.89% drop over the past week, highlighting the stock’s characteristic high volatility. The decline was attributed to investor disappointment over the absence of a more definitive announcement regarding the HPC/AI deal, especially following a $50 million private investment in public equity (PIPE) from SoftBank (TYO:9984) last month to support Cipher’s HPC data center initiatives.

Cipher Mining has been actively developing a pipeline of greenfield sites in Texas, now boasting over 2.1 gigawatts of total capacity earmarked for HPC data center development, with 450 megawatts expected to be available this year. Additionally, the company acquired 337 acres at the Barber Lake site and signed a memorandum of understanding (MOU) for a new 500 MW data center, supplementing the existing 300 MW facility.

The Barber Lake development, with 300 MW of power currently available and an additional 500 MW expected to come online in 2029, is considered an ideal location for HPC/AI due to its access to large-scale power and fiber. Colonnese views the recent sell-off as an opportunity to buy, citing Cipher’s strong fundamentals and the optionality in its business model. InvestingPro analysis shows the company trades at an EV/EBITDA multiple of 40.94x, with a healthy current ratio of 2.57x. Discover 12 additional exclusive ProTips and comprehensive valuation metrics for CIFR with an InvestingPro subscription, including detailed Fair Value analysis and growth projections.

In other recent news, Cipher Mining Inc reported a surprising earnings beat for the fourth quarter of 2024, with earnings per share of $0.05, surpassing the forecasted loss of $0.087. The company’s revenue increased by 75% quarter-over-quarter, reaching $42 million, reflecting a significant turnaround in their financial performance. Despite these positive results, Cipher Mining’s stock experienced a decline, which may indicate investor concerns about broader market conditions or future expansion costs. The company also reported a GAAP net income of $18 million for the quarter, marking a substantial improvement from previous losses.

Cipher Mining’s strategic initiatives include plans to increase its hash rate to 23 exahashes per second by the third quarter of 2025 and potential expansions at the Barber Lake site. The company is evaluating a significant power capacity increase, which highlights its growth potential. Additionally, Cipher Mining has been involved in discussions with potential tenants and financing partners to expand its data center capabilities. The company also received a $50 million investment from SoftBank, aimed at bolstering its data center development business.

Analysts from Needham and Northland Capital Markets have shown interest in Cipher Mining’s developments, particularly regarding its data center expansion and power contract strategies. The company’s competitive advantage is underscored by its low electricity costs, which remain a key driver of its unit economics. As Cipher Mining continues to execute its growth plans, it remains focused on optimizing its operations and exploring opportunities in both Bitcoin mining and high-performance computing (HPC) infrastructure.

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