Cipher Mining Signs $5.5 Billion Amazon Deal, Boosting AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Long-Term Deal Signed: Cipher Mining has secured a 15-year agreement with Amazon valued at $5.5 billion for 300 megawatts of AI data center capacity, providing a stable revenue stream and enhancing its competitive position in the AI infrastructure market.
- Renewable Energy Advantage: By operating its data centers on renewable energy, Cipher Mining complies with environmental regulations, particularly as xAI faces regulatory pressures, allowing it to stand out and attract more partnership opportunities.
- Significant Growth Potential: The company has over 3 gigawatts in its pipeline, expected to support at least nine more deals like the Amazon agreement, further solidifying Cipher Mining's market position as AI demand surges.
- Future Demand Forecast: Deloitte projects that demand for U.S. AI data center gigawatts will increase more than 30-fold to 123 gigawatts by 2035, positioning Cipher Mining favorably to meet this demand with its robust infrastructure and market strategy.
Analyst Views on CIFR
Wall Street analysts forecast CIFR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CIFR is 26.23 USD with a low forecast of 18.00 USD and a high forecast of 34.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 17.390
Low
18.00
Averages
26.23
High
34.00
Current: 17.390
Low
18.00
Averages
26.23
High
34.00
About CIFR
Cipher Mining Inc. is focused on the development and operation of industrial-scale data centers for bitcoin mining and high-performance computing (HPC) hosting. The Company operates two wholly owned bitcoin mining data centers, a 207 megawatts (MW) site located in Odessa, Texas that draws fixed priced power from a power purchase agreement with its electricity provider (the Odessa Facility), and a 300 MW data center in Wink, Texas, of which 150 MW is operational as a bitcoin mining data center, that draws power from the power grid (the Black Pearl Facility), and has equity investments in three partially-owned 40 MW bitcoin mining data centers. Its development pipeline totals approximately 3.4 gigawatts (GW) across eight sites. The Odessa Facility is an approximately 52-acre site, located next to a natural gas power production facility. Through a subsidiary, it is in the process of constructing a data center for HPC near Colorado City, Texas (the Barber Lake Facility).
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.
