Jefferies Initiates Coverage on Cipher Digital with Buy Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 07 2024
0mins
Source: SeekingAlpha
Cipher Digital Inc. saw a price increase of 5.03% as it crossed above its 20-day SMA, reflecting positive investor sentiment.
Jefferies analysts initiated coverage on Cipher Digital with a Buy rating and set a price target of $32, highlighting the company's strong position in converting power resources for AI data centers, which is expected to enhance its market competitiveness. This strategic move is anticipated to support the completion of 384 MW by 2026, bolstering the company's growth potential.
The positive outlook from Jefferies indicates strong confidence in Cipher Digital's future, especially as the company adapts to the evolving market landscape, positioning itself favorably among peers in the AI and cryptocurrency sectors.
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Analyst Views on CIFR
Wall Street analysts forecast CIFR stock price to rise
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 24.590
Low
18.00
Averages
25.75
High
30.00
Current: 24.590
Low
18.00
Averages
25.75
High
30.00
About CIFR
Cipher Digital Inc., formerly Cipher Mining Inc., is a high-performance computing (HPC) data center developer and operator. The Company is dedicated to developing and operating industrial-scale data centers engineered for computing. Its vertical integration spans critical stages of the data center value chain, including land and power origination and interconnection, site development, data center design and construction, oversight and ongoing facility operations. It also operates and maintains energy-intensive data center facilities. Its data center portfolio consists of 4.2 gigawatts (GW) of capacity across 10 sites, at various stages of interconnection. The Company is engaged in developing 600 megawatts (MW) of HPC data center facilities across two sites for hyperscaler tenants and operates approximately 207 MW of power at one bitcoin mining data center in Texas. It also maintains a pipeline of approximately 3.4 GW across seven sites in Texas and one additional site in Ohio.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
From Fired Researcher to $13.7 Billion King: Leopold Aschenbrenner's Hedge Fund Journey
- Stake Sale: Leopold Aschenbrenner sold his stake in Cipher Digital Inc. (NASDAQ:CIFR) in Q1 2026 after holding 10.4 million shares in Q4 2025, indicating a significant loss of confidence that may impact market perceptions of the company's future performance.
- Revenue Collapse: Cipher reported Q1 2026 revenue of just $34.84 million, a staggering 41.7% drop from $60 million in Q4 2025, primarily due to the winding down of operations at the Black Pearl site, highlighting structural issues in its revenue generation.
- Widening Net Loss: The company posted a GAAP net loss of $114.3 million, or $0.28 per diluted share, missing analyst estimates of $0.23-$0.24, indicating a deterioration in financial health that could further erode investor confidence.
- Negative Operating Momentum: Cipher's Adjusted EBITDA was negative $48 million, reflecting ongoing operational challenges; while there is optimism about AI compute potential, the rapid disassembly of its legacy revenue engine may limit future growth prospects.
See More
Cipher Digital's AI Data Center Potential is Huge
- Long-Term Contract Advantage: Cipher Digital secures stable revenue streams through long-term contracts with major tech companies, with plans to energize 2.5 gigawatts between 2028 and 2029, highlighting its critical role in AI infrastructure.
- Rapid Deployment Capability: The company's landlord model reduces data center construction costs, enabling faster deployment compared to competitors, with 270 megawatts of energy expected to be ready by 2027, enhancing its market competitiveness.
- Significant Revenue Potential: The 15-year, $5.5 billion contract with Amazon is projected to generate $367 million annually, indicating Cipher Digital's long-term profitability and market appeal in the AI data center sector.
- Stock Growth Potential: Despite a 29% year-over-year revenue decline in Q1, Cipher Digital's stock has surged 440% over the past year, reflecting market confidence in its future growth, with rapid revenue scaling expected as more data centers come online.
See More
Cipher Digital's Growth Potential in AI Data Centers
- Significant Stock Performance: Since rebranding in February 2026, Cipher Digital's stock has surged by 40%, indicating strong growth potential in AI infrastructure, particularly in securing long-term contracts with major tech companies.
- Stable Revenue Forecast: The company generates revenue by building AI data centers and signing long-term contracts, with expectations to earn $367 million annually from its $5.5 billion deal with Amazon, further solidifying its market position.
- Clear Competitive Advantage: Cipher Digital's landlord model reduces data center construction costs, allowing for faster deployment compared to competitors like Iren and Nebius, thereby enhancing profitability and market positioning.
- Future Growth Potential: Despite a 29% year-over-year revenue decline in Q1, Cipher Digital anticipates adding 2.5 gigawatts of energy between 2028 and 2029, with rapid revenue growth expected as more data centers come online, potentially outperforming the S&P 500.
See More
Canaan Inc. Reports Q1 2026 Financial Results
- Revenue Performance: Canaan Inc. reported total revenues of $62.7 million for Q1 2026, aligning with previous guidance, yet significantly down from $196.3 million in Q4 2025, reflecting tightened market demand and Bitcoin price volatility.
- Product and Mining Revenue: Product revenue was $42.9 million, a sharp decline from $164.9 million in Q4 2025, primarily due to reduced computing power sales and weak market demand, while mining revenue stood at $19.1 million, demonstrating resilience despite Bitcoin price fluctuations.
- Cryptocurrency Treasury: As of March 31, 2026, the company's cryptocurrency treasury reached a record high of 1,807.60 BTC and 3,951.53 ETH, indicating a strong asset base amid market uncertainties.
- Operational Efficiency Improvement: The company achieved an 11% sequential decline in general and administrative expenses in Q1, optimizing resource allocation and enhancing flexibility to navigate market uncertainties, while also collecting approximately $42 million in customer cash recoveries.
See More
Canaan Inc. Reports Q1 2026 Financial Highlights
- Revenue Performance: Total revenue for Q1 2026 was $62.7 million, aligning with the company's prior guidance, although significantly down from $196.3 million in Q4 2025, indicating weakened market demand.
- Bitcoin Production: Canaan produced 257 bitcoins in Q1 despite facing volatility in bitcoin prices and weather-related disruptions in North America, demonstrating resilience in its production capabilities.
- Energy Infrastructure Expansion: The acquisition of a 49% stake in ABC Projects in West Texas enhances the company's energy-compute infrastructure, expected to boost operational hashrate by approximately 4.4 EH/s, reinforcing strategic access to power resources.
- Improved Financial Position: As of the end of Q1 2026, the company held $43.5 million in cash, a significant drop from $80.8 million at the end of 2025, but liquidity improved with approximately $42 million in customer cash collections in Q2.
See More
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- Stock Surge: Keel Infrastructure's stock has surged 75% year-to-date, nearing a $2.5 billion market cap, indicating strong investor confidence in its pivot to AI infrastructure and reflecting positive market expectations for crypto miners transitioning to new sectors.
- Power Pipeline Advantage: With a 2.2-gigawatt power pipeline, including a 1.3-gigawatt project in Scrubgrass, Pennsylvania, Keel is well-positioned to generate stable annual revenue for its AI cloud services, further solidifying its market position among tech giants.
- Leasing Agreement Outlook: Keel expects to sign three leasing agreements this year for AI data centers with capacities of 350 megawatts, 110 megawatts, and 18 megawatts, and while it has yet to secure a major tech partnership, these potential contracts could significantly enhance its market value.
- Capital Raising Strategy: Operating in a capital-intensive industry, Keel raised $500 million through convertible notes with a 1.375% annual yield, providing necessary funding for future infrastructure expansion while minimizing costs associated with AI chip supply.
See More
From Fired Researcher to $13.7 Billion King: Leopold Aschenbrenner's Hedge Fund Journey
- Stake Sale: Leopold Aschenbrenner sold his stake in Cipher Digital Inc. (NASDAQ:CIFR) in Q1 2026 after holding 10.4 million shares in Q4 2025, indicating a significant loss of confidence that may impact market perceptions of the company's future performance.
- Revenue Collapse: Cipher reported Q1 2026 revenue of just $34.84 million, a staggering 41.7% drop from $60 million in Q4 2025, primarily due to the winding down of operations at the Black Pearl site, highlighting structural issues in its revenue generation.
- Widening Net Loss: The company posted a GAAP net loss of $114.3 million, or $0.28 per diluted share, missing analyst estimates of $0.23-$0.24, indicating a deterioration in financial health that could further erode investor confidence.
- Negative Operating Momentum: Cipher's Adjusted EBITDA was negative $48 million, reflecting ongoing operational challenges; while there is optimism about AI compute potential, the rapid disassembly of its legacy revenue engine may limit future growth prospects.
See More
Cipher Digital's AI Data Center Potential is Huge
- Long-Term Contract Advantage: Cipher Digital secures stable revenue streams through long-term contracts with major tech companies, with plans to energize 2.5 gigawatts between 2028 and 2029, highlighting its critical role in AI infrastructure.
- Rapid Deployment Capability: The company's landlord model reduces data center construction costs, enabling faster deployment compared to competitors, with 270 megawatts of energy expected to be ready by 2027, enhancing its market competitiveness.
- Significant Revenue Potential: The 15-year, $5.5 billion contract with Amazon is projected to generate $367 million annually, indicating Cipher Digital's long-term profitability and market appeal in the AI data center sector.
- Stock Growth Potential: Despite a 29% year-over-year revenue decline in Q1, Cipher Digital's stock has surged 440% over the past year, reflecting market confidence in its future growth, with rapid revenue scaling expected as more data centers come online.
See More
Cipher Digital's Growth Potential in AI Data Centers
- Significant Stock Performance: Since rebranding in February 2026, Cipher Digital's stock has surged by 40%, indicating strong growth potential in AI infrastructure, particularly in securing long-term contracts with major tech companies.
- Stable Revenue Forecast: The company generates revenue by building AI data centers and signing long-term contracts, with expectations to earn $367 million annually from its $5.5 billion deal with Amazon, further solidifying its market position.
- Clear Competitive Advantage: Cipher Digital's landlord model reduces data center construction costs, allowing for faster deployment compared to competitors like Iren and Nebius, thereby enhancing profitability and market positioning.
- Future Growth Potential: Despite a 29% year-over-year revenue decline in Q1, Cipher Digital anticipates adding 2.5 gigawatts of energy between 2028 and 2029, with rapid revenue growth expected as more data centers come online, potentially outperforming the S&P 500.
See More
Canaan Inc. Reports Q1 2026 Financial Results
- Revenue Performance: Canaan Inc. reported total revenues of $62.7 million for Q1 2026, aligning with previous guidance, yet significantly down from $196.3 million in Q4 2025, reflecting tightened market demand and Bitcoin price volatility.
- Product and Mining Revenue: Product revenue was $42.9 million, a sharp decline from $164.9 million in Q4 2025, primarily due to reduced computing power sales and weak market demand, while mining revenue stood at $19.1 million, demonstrating resilience despite Bitcoin price fluctuations.
- Cryptocurrency Treasury: As of March 31, 2026, the company's cryptocurrency treasury reached a record high of 1,807.60 BTC and 3,951.53 ETH, indicating a strong asset base amid market uncertainties.
- Operational Efficiency Improvement: The company achieved an 11% sequential decline in general and administrative expenses in Q1, optimizing resource allocation and enhancing flexibility to navigate market uncertainties, while also collecting approximately $42 million in customer cash recoveries.
See More
Canaan Inc. Reports Q1 2026 Financial Highlights
- Revenue Performance: Total revenue for Q1 2026 was $62.7 million, aligning with the company's prior guidance, although significantly down from $196.3 million in Q4 2025, indicating weakened market demand.
- Bitcoin Production: Canaan produced 257 bitcoins in Q1 despite facing volatility in bitcoin prices and weather-related disruptions in North America, demonstrating resilience in its production capabilities.
- Energy Infrastructure Expansion: The acquisition of a 49% stake in ABC Projects in West Texas enhances the company's energy-compute infrastructure, expected to boost operational hashrate by approximately 4.4 EH/s, reinforcing strategic access to power resources.
- Improved Financial Position: As of the end of Q1 2026, the company held $43.5 million in cash, a significant drop from $80.8 million at the end of 2025, but liquidity improved with approximately $42 million in customer cash collections in Q2.
See More
Keel Infrastructure Transitions to AI Market, Stock Surges 75%
- Stock Surge: Keel Infrastructure's stock has surged 75% year-to-date, nearing a $2.5 billion market cap, indicating strong investor confidence in its pivot to AI infrastructure and reflecting positive market expectations for crypto miners transitioning to new sectors.
- Power Pipeline Advantage: With a 2.2-gigawatt power pipeline, including a 1.3-gigawatt project in Scrubgrass, Pennsylvania, Keel is well-positioned to generate stable annual revenue for its AI cloud services, further solidifying its market position among tech giants.
- Leasing Agreement Outlook: Keel expects to sign three leasing agreements this year for AI data centers with capacities of 350 megawatts, 110 megawatts, and 18 megawatts, and while it has yet to secure a major tech partnership, these potential contracts could significantly enhance its market value.
- Capital Raising Strategy: Operating in a capital-intensive industry, Keel raised $500 million through convertible notes with a 1.375% annual yield, providing necessary funding for future infrastructure expansion while minimizing costs associated with AI chip supply.
See More
