H.C. Wainwright Reiterates Buy Rating on Cipher Mining (CIFR)

H.C. Wainwright analyst Mike Colonnese reiterated a Buy rating and $7.00 price target on Cipher Mining (NASDAQ: CIFR).

The analyst commented: "Sights set on expansion into AI, while BTC mining operations continue to scale. Earlier today, Cipher reported solid 3Q24 results despite the headwinds from the first full-quarter impact of Bitcoin’s fourth halving event and reiterated its YE2024 guidance. A combination of capacity expansion, fleet upgrades, and industry leading power costs have enabled Cipher to successfully navigate the reduction in block subsidies. Meanwhile, management has been very active in building out its pipeline of greenfield development sites in Texas in recent
months, a strategy that has now expanded the company's total pipeline to over 2 GW. We view Cipher's large development pipeline as a significant competitive advantage, as it provides the company with greater visibility into future growth opportunities while also affording Cipher with important optionality to expand its Bitcoin mining operations and/or to build out large-scale HPC data centers. While the company has yet to sign an HPC deal, we get a sense from management's tone on the call that conversations with prospective customers are progressing well, and we believe that any future HPC-related announcements could be a positive catalyst for the stock, as we have witnessed with other miners that have made the pivot to AI. On the mining side, Cipher
had 10.5 EH/s of total capacity online at the time of the call, up from 9.3 EH/s at the end of 3Q and remains on track to achieve 13.5 EH/s and 18.9 J/TH by the end of this year after fleet upgrades at Odessa are fully completed. Meanwhile, construction at Cipher’s new 300 MW site in Texas, Black Pearl, is tracking to plan with the initial 150 MW phase of expansion expected to come online in 2Q25. Management still expects the site to be fully deployed by the end of 2025, which will support an incremental 21.5 EH/s of miners, and would lift Cipher’s total operating hash rate to 35 EH/s. We continue to like the name here given Cipher's near-term growth opportunities, attractive unit economics, and AI optionality. Reiterate Buy."

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Shares of Cipher Mining closed at $5.28 yesterday.

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