Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 2 Jun, 25 | CIFR | Speculative Buy | USD 3.23 | USD 3.4 | USD 3.55 | 1 day | Closed |
6.81%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Cipher Mining Inc., together with its subsidiaries, engages in the development and operation of industrial scale bitcoin mining data centers in the United States. The company was incorporated in 2020 and is based in New York, New York. Cipher Mining Inc. operates as a subsidiary of Bitfury Holding B.V.
Hashrate Growth: The company anticipates scaling self-mining capacity from 13.5 EH/s in Q1 to 23.1 EH/s by Q3 2025, representing an approximate 71% increase in hashrate within two quarters.
Operational Efficiency: Cipher expects to bring an additional 2.5 EH/s online one quarter ahead of schedule at no extra capital cost by deploying idle inventory at the Black Pearl site.
Diluted EPS: Cipher’s net loss translated to $0.11 per diluted share, which could negatively impact investor sentiment despite adjusted earnings.
Net Loss: The company reported a Q1 2025 net loss of $39 million, which may raise concerns about ongoing profitability and cash burn.
Cipher faces a high degree of exposure to bitcoin price volatility and regulatory uncertainty, which may adversely affect its profitability and expansion plans
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 3.23 | 2.8 | 3.4 | 3.55 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Disciplined Execution and Strategic Partnership: In the first quarter of 2025, Cipher Mining Inc. demonstrated steady execution in line with its strategic objectives. Chief Executive Officer Tyler Page emphasized the company's disciplined approach and the importance of its partnership with Fortress Credit Advisors LLC. The collaboration with Fortress aims to facilitate the development of a next-generation data center at the Barber Lake site. Fortress brings both deep experience in data center development and established relationships with hyperscale clients, aligning with Cipher’s ongoing strategic discussions in the space.
Accelerated Development at Black Pearl: Cipher made substantial operational progress during the quarter, particularly with the early-stage deployment of rigs at its Black Pearl site. The company is approaching the completion of Phase I of the Black Pearl Data Center, including the installation of four substation transformers. With energization now expected ahead of schedule in May, Cipher has chosen to deploy existing rig inventory at the site immediately. This move is expected to add 2.5 exahashes per second (EH/s) of self-mining capacity one quarter earlier than originally planned, without incurring additional capital expenditure.
Expansion of Self-Mining Capabilities: The company ended the quarter with a total self-mining capacity of approximately 13.5 EH/s, following the full operational integration of the upgraded Odessa fleet. This expansion underpins Cipher’s broader growth trajectory, with hashrate capacity expected to rise to around 16.0 EH/s by the end of the second quarter. Further scaling is anticipated, with a target of approximately 23.1 EH/s by the end of the third quarter of 2025, driven by continued rig deployments and incoming machine deliveries.
Strengthening High-Performance Computing (HPC) Tenant Activity: Cipher is seeing growing momentum in its high-performance computing (HPC) segment, particularly at the Barber Lake location. The site has attracted multiple HPC tenants, several of whom are under nondisclosure agreements and undergoing due diligence. This reflects the site’s increasing commercial viability and adds another potential revenue stream as Cipher diversifies beyond bitcoin mining.
Robust Infrastructure and Capacity Pipeline: Infrastructure development remains a core focus, with Phase I at Black Pearl nearing completion. Additionally, Cipher reported a pipeline of 2.8 gigawatts (GW) of site capacity across its portfolio. The scale of this pipeline provides substantial flexibility and optionality for future expansions as the company evaluates market conditions and demand for both mining and HPC services.
Financial Performance and Treasury Strategy: Despite a net loss of $39 million, or $0.11 per diluted share in Q1 2025, Cipher reported adjusted earnings of $6 million, or $0.02 per diluted share, reflecting the benefits of strategic cost and treasury management. The company’s strong balance sheet, paired with disciplined growth strategies and operational flexibility, supports its ability to navigate evolving market dynamics and position for long-term growth.
Technical Commentary:
CIFR's stock price is approaching key support levels, there is a possibility of a minor sell imbalance that could trigger an upward move. The 14-period RSI is in oversold territory and may rebound, suggesting a potential easing of selling pressure. Additionally, the stock is still trading above its 50-day Simple Moving Average, which could serve as a support level in the near term.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Cipher Mining, Inc. (NASDAQ: CIFR) at its current market price of USD 3.23 as of June 2, 2025 (8:55 am PDT).
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| CIFR Cipher Mining Inc |
0.37 6.51% | 6.05 | - | 18.42 | 12.39 | 2.81 | 12.37 | 46.83 |
| MS Morgan Stanley |
1.28 0.90% | 144.14 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| CGXYY China Galaxy Securities Co Ltd ADR |
- -% | 26.50 | 144.44 | 86.21 | 4.25 | 7.96 | ||
| SCHW Charles Schwab Corp |
0.14 0.15% | 91.48 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| GS Goldman Sachs Group Inc |
7.79 1.09% | 723.68 | 18.44 | 10.60 | 2.83 | 1.16 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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