Michael Donovan, an analyst from Compass Point, reiterated the Buy rating on Cipher Mining. The associated price target is $18.00.
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Michael Donovan’s rating is based on Cipher Mining’s strategic developments and promising financial prospects. The company has secured a significant 10-year hosting lease with Fluidstack at its Barber Lake site, which is backed by Google. This partnership not only validates Cipher’s capabilities as an AI-ready developer but also enhances its position to expand a substantial high-performance computing (HPC) pipeline. The lease agreement is expected to generate approximately $3 billion in rent revenue starting in October 2026, with potential extensions that could increase the contract’s value to $7 billion.
Additionally, Cipher Mining’s financial strategy includes funding the build with an $800 million zero-coupon convertible due in 2031 and capped calls, which complements its existing Bitcoin mining cash flow. The company’s scalable HPC model and confidence in execution, along with a bullish outlook on Bitcoin, support the Buy rating. The economics of the Fluidstack deal, with a strong site-level NOI margin and a favorable yield on cost, further solidify the financial viability of Cipher’s projects. These factors combined lead to an increased price target of $18.
In another report released yesterday, Northland Securities also maintained a Buy rating on the stock with a $7.00 price target.