Cipher Mining Inc

Cipher Mining Inc. (NASDAQ: CIFR) is a technology company. The Company is focused on the development and operation of bitcoin mining data centers. The Company, through its subsidiaries, including Cipher Mining Technologies Inc., operates four bitcoin mining data centers in Texas. It is also developing an additional data center in Winkler County, Texas. 

Recent Business and Financial Updates

• Performance Metrics for November 2024: In November 2024, Cipher Mining achieved significant milestones in its operations. The company mined approximately 202 BTC, which includes power sales equivalent to 13 BTC and 30 BTC mined at joint venture data centers under Cipher’s ownership. Bitcoin sales for the month totaled 234 BTC, while the company ended with a balance of 1,383 BTC, including approximately 258 BTC pledged as collateral. The deployed mining fleet comprised 76,000 rigs, with a month-end operating hash rate of 12.0 EH/s and fleet efficiency of 20.8 J/TH, underscoring the company’s operational excellence.
• Strategic Operational Developments: Cipher Mining’s teams made notable progress in enhancing operations and developing infrastructure during the month. The ongoing fleet upgrade at the Odessa facility is expected to be completed by year-end, positioning the company with one of the industry’s most efficient mining rigs. In parallel, the Black Pearl data center's construction advanced, with substation work underway and energization on track for Q2 2025. These initiatives reflect Cipher’s commitment to optimizing its infrastructure to strengthen its market position.
• Expansion Through Strategic Acquisitions: The company expanded its operational footprint through the acquisition of the 100 MW Stingray site in November 2024. This site, expected to energize in 2026, complements Cipher’s robust development pipeline of over 2.6 GW across 11 sites. Additional acquisitions included the 300 MW Barber Lake data center, featuring 250 acres of land and approvals for high-capacity energy use, and the 70 MW Reveille site, which has potential scalability to 200 MW. Cipher also secured options to acquire three additional sites in Texas, each targeting 500 MW, suited for both bitcoin mining and high-performance computing (HPC).
• Financial Performance and Resilience: Cipher reported a net loss of USD 87 million in Q3 2024, equivalent to USD 0.26 per diluted share, with an adjusted loss of USD 3 million or USD 0.01 per diluted share. The results reflect industry-wide pressures, including record-low hash prices following the bitcoin halving. However, Cipher’s ability to maintain nearly flat adjusted losses quarter-over-quarter highlights its operational efficiency and resilience amidst challenging conditions. The Odessa power purchase agreement experienced a significant markdown due to reduced forward market electricity prices, further impacting financial outcomes.
• Construction and Operational Progress: The Odessa fleet upgrade remains on schedule for Q4 2024, which will enhance the company’s self-mining hash rate to approximately 13.5 EH/s. Additionally, construction of the Black Pearl data center is advancing as planned, with energization expected by Q2 2025. These developments signify Cipher’s focus on ensuring its facilities are equipped with state-of-the-art technology to maximize efficiency and output.
• Strategic Vision and Diversification: Cipher is actively diversifying its portfolio to strengthen its market presence and broaden revenue streams. The company is engaging with hyperscalers to secure HPC tenants while continuing to develop its bitcoin mining operations. With a development pipeline exceeding 2.6 GW and projects scheduled for energization from 2025 to 2027, Cipher is well-positioned to lead in both the bitcoin mining and data center sectors. This strategic vision underscores Cipher’s commitment to innovation, growth, and long-term sustainability.
  

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 57.32, upward trending, with expectations of a consolidation or an upward momentum towards next resistance levels. Additionally, the stock's current positioning is above both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support levels.  

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 for Cipher Mining Inc. (NASDAQ: CIFR) at the closing market price of USD 6.86 as of December 04, 2024. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

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. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is December 04, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.