Cipher Mining (CIFR) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: N/A
• Average Volume (3M): 14.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.83
• Revenue Growth: -0.65%
• EPS Growth: -808.88%
• Country: US
• Employees: 43
• Sector: Financial
• Sector Strength: 87
• Industry: Financial - Capital Markets
• EPS (TTM): -0.11
• Shares Outstanding: 371,213,380
• 10 Day Avg. Volume: 18,416,631
• 30 Day Avg. Volume: 14,434,513
• PEG Ratio: -1.63
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.11
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: -123.27
• Enterprise Value/Ebitda: 3.86
• 1Y Price Target: $6.31
• Price Target Upside: 63.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Cipher Mining's overall score reflects strong revenue growth and positive technical indicators, but significant profitability and cash flow challenges. Although their strategic partnerships and operational efficiencies are promising, the stock's valuation remains a concern due to negative earnings.

Positive Factors

Operational Efficiency

Cipher Mining's accelerated deployment at Black Pearl, ahead of schedule, allows the company to bring additional capacity online faster and utilize older rigs for profit.

Partnerships

Cipher's newly formed partnership with Fortress is seen as a significant development that should accelerate the company's timeline to sign an HPC/AI tenant.

Price Target Increase

Analyst increases the price target to $7.00 due to higher HPC valuation and potential economic ROI of 40% from the CIFR/Fortress JV.

Negative Factors

Debt and Financing Concerns

The potential deal at Barber Lake, free from financing theoretically up to a billion dollars of capex, could result in multiple expansion for Cipher Mining after signing a long-term tenant.

Financial Performance

CIFR beat estimates modestly on top-line and more significantly on Adj. EBITDA due to lower G&A expenses.

Market Competition

Cipher Mining's low power costs and competitive hash costs make it a strong performer among pure-play miners.

Cipher Mining Business Overview & Revenue Model

Company Description

Cipher Mining Inc. (CIFR) is a U.S.-based company operating in the cryptocurrency sector, specifically focusing on bitcoin mining. The company aims to be a leading bitcoin mining company in the United States by developing high-capacity mining facilities that harness sustainable energy sources. Cipher Mining's core service is the production of bitcoin through mining operations, leveraging advanced technology and strategic partnerships to optimize their mining processes and efficiency.

How the Company Makes Money

Cipher Mining makes money primarily through the mining of bitcoin. The company generates revenue by successfully mining new bitcoins, which are then either held on the company's balance sheet or sold on cryptocurrency exchanges. The revenue model is heavily dependent on the market price of bitcoin, the efficiency of their mining operations, and the overall network difficulty, which influences how many bitcoins can be mined over a certain period. Additionally, Cipher Mining may engage in strategic partnerships and power purchase agreements to secure low-cost and sustainable energy sources, which are critical factors in reducing operational costs and increasing profitability. The company might also explore revenue opportunities through transaction fees associated with bitcoin mining.

Cipher Mining Financial Statement Overview

Summary

Cipher Mining's financial health is challenged by declining revenue, persistent losses, and negative cash flows. While the balance sheet shows strong equity, the increasing debt levels and negative free cash flow highlight potential risks. The company needs to address its profitability and cash flow issues to improve its financial stability.

Income Statement

Cipher Mining has experienced inconsistent revenue performance with periods of zero revenue. The recent decline from $126.84M in 2023 to zero in 2024 significantly impacts the income statement. The company has negative net income and EBIT, indicating challenges in profitability. The net profit margin is negative, reflecting ongoing losses.

Balance Sheet

The balance sheet reveals a strong equity position with a substantial stockholders' equity of $682M in 2024. However, the debt-to-equity ratio has increased, suggesting a rise in leverage. The company maintains a healthy cash position, yet the negative equity in earlier years highlights historical financial instability.

Cash Flow

Operating cash flow remains negative, indicating cash outflows from operations, which is a concern. Free cash flow has deteriorated from -$149.26M in 2023 to -$227M in 2024, highlighting cash management challenges. Despite positive financing cash flow, the reliance on external funding could pose long-term risks.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
151.27M	126.84M	3.04M	0.00	0.00
	Gross Profit
28.11M	76.53M	2.29M	-4.87K	0.00
	EBIT
-43.70M	-20.11M	-74.39M	-78.71M	-153.66K
	EBITDA
61.09M	39.70M	-31.93M	-72.12M	-107.03K
	Net Income Common Stockholders
-44.63M	-25.78M	-39.05M	-78.71M	-107.03K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.58M	86.11M	11.93M	209.84M	1.28M
	Total Assets
855.45M	566.14M	418.46M	354.17M	173.09K
	Total Debt
56.42M	21.98M	20.32M	0.00	0.00
	Net Debt
50.83M	-64.13M	8.39M	-209.84M	-1.28M
	Total Liabilities
173.49M	74.80M	75.57M	636.05K	176.57K
	Stockholders Equity
681.95M	491.34M	342.89M	353.53M	-3.48K
Cash Flow		Free Cash Flow
-227.01M	-149.26M	-248.83M	-36.78M	-321.64K
	Operating Cash Flow
-87.51M	-94.24M	-20.91M	-31.67M	-321.64K
	Investing Cash Flow
-192.13M	52.76M	-173.91M	-120.14M	-170.00M
	Financing Cash Flow
213.51M	115.66M	-3.09M	361.65M	171.60M

Cipher Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.86
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIFR, the sentiment is Positive. The current price of 3.86 is above the 20-day moving average (MA) of 3.14, above the 50-day MA of 2.84, and below the 200-day MA of 4.41, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 78.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CIFR.

Cipher Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IREN	65 Neutral	$1.88B	―	-3.39%	―	―	―
FUFU	65 Neutral	$606.76M	11.24	56.54%	―	―	96.50%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%
BTBT	57 Neutral	$521.53M	8.82	-23.29%	―	53.68%	-265.12%
CIFR	55 Neutral	$1.43B	―	-18.49%	―	-0.65%	-808.88%
WULF	54 Neutral	$1.54B	―	-56.12%	―	31.85%	-34.27%
ARBK	37 Underperform	$27.31M	―	242.25%	―	―	―

Cipher Mining Corporate Events

Cipher Mining Reports Q1 2025 Financial Results

On May 6, 2025, Cipher Mining announced its first quarter 2025 financial results, highlighting a revenue increase of 16% quarter over quarter to $49 million, despite a GAAP net loss of $39 million. The company signed a term sheet with Fortress Credit Advisors for a joint venture at Barber Lake and is nearing completion of the Black Pearl Data Center’s Phase I infrastructure. Cipher plans to deploy rigs from inventory at Black Pearl ahead of schedule, aiming to reach 16.0 EH/s by the end of the second quarter and 23.1 EH/s by the third quarter, reflecting strategic growth and operational efficiency.

Spark’s Take on CIFR Stock

According to Spark, TipRanks’ AI Analyst, CIFR is a Neutral.

Cipher Mining’s overall stock score is influenced by its struggling financial performance, marked by a decline in revenue and persistent losses. Despite these challenges, the company has strong equity and strategic investments that signal potential growth. Technical analysis indicators show bearish trends, and valuation metrics suggest the stock may be overvalued. The positive aspects of the earnings call, including revenue growth and strategic investments, contribute to a more optimistic outlook, but the financial challenges weigh heavily on the overall score.

To see Spark’s full report on CIFR stock, click here.

Cipher Mining Reports Strong Q4 2024 Financial Results

Cipher Mining announced its financial results for the fourth quarter and full year 2024, highlighting significant operational achievements. The company reported net earnings of $18 million and adjusted earnings of $51 million for Q4 2024. Key developments include the upgrade of the Odessa fleet, increasing the self-mining hashrate to approximately 13.5 EH/s, and the acquisition of the Stingray data center site in West Texas. Additionally, Cipher acquired more land adjacent to its Barber Lake site and entered into negotiations to build a new 500 MW HPC data center. These strategic moves are part of Cipher’s vision to become a leading data center developer for HPC infrastructure while maintaining its position in bitcoin mining.