Cipher Digital rises as AI data center rebuttal lifts sector

Cipher Digital Inc. stock climbed 8.1% in morning trading Tuesday as confidence returned to AI data center operators following a weekend defense of the sector's business model.

The gains followed comments from TeraWulf CEO Paul Prager, who used social media to challenge recent warnings from Elon Musk about stranded compute in partially complete data centers. Prager argued that developers with secured power, fixed-price contracts, and investment-grade tenants face limited exposure to such risks.

The response triggered gains across former Bitcoin mining companies now shifting to AI infrastructure. Applied Digital also moved higher alongside TeraWulf and Cipher Digital.

Cipher Digital is set to report third-quarter 2026 results on November 2 before market open. Options data indicates the market expects a move of approximately 15% in either direction around the earnings release.

The company is transitioning from Bitcoin mining to contracted AI data center leases. Investors are monitoring whether lease revenue has begun to materialize as the strategic shift progresses.

The stock had been trading near its 52-week low before Tuesday's advance.

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