Cipher Mining Signs $5.5 Billion Long-Term Deal with Amazon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Source: Fool
- Market Transformation: Cipher Mining has pivoted from Bitcoin mining to becoming a provider of AI infrastructure, signing multiple long-term agreements with tech giants that are expected to drive future revenue growth and enhance profitability.
- Major Partnership: The 15-year deal with Amazon Web Services worth $5.5 billion signifies strong demand for the company's AI infrastructure, which is anticipated to lay the groundwork for improved financial performance in the future.
- Growth Potential: With a 3.4 gigawatt development pipeline, the Amazon deal only accounts for 300 megawatts, indicating significant expansion potential in the AI market that is likely to boost long-term leasing profitability.
- Industry Comparison: In contrast to ChargePoint's stagnating EV infrastructure demand, Cipher Mining's robust AI infrastructure demand highlights its competitive advantage and growth opportunities in the future market.
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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: 18.970
Low
18.00
Averages
26.23
High
34.00
Current: 18.970
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.
Cipher Mining Fundraising Nears Completion, Valuation at $350 Billion
- Fundraising Progress: Cipher Mining's fundraising deal is nearing completion, expected to value the company at $350 billion, indicating strong market confidence in its AI infrastructure strategy.
- Investor Backing: The deal is led by Singapore's sovereign wealth fund GIC and U.S. investor Coatue, with Sequoia Capital also contributing a significant investment, further solidifying Cipher Mining's market position in the AI sector.
- Stock Price Surge: Driven by investments in AI infrastructure, shares of Cipher Mining and competitors like IREN surged between 13% and 15% on Tuesday, reflecting optimistic sentiment among investors in the crypto mining sector.
- Analyst Rating Upgrade: Keefe Bruyette raised Cipher Mining's price target from $13 to $22 while maintaining an 'Outperform' rating, indicating analysts' positive outlook on its AI colocation strategy.
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IREN Targets AI Infrastructure with $19 Billion Market Value
- Market Potential: IREN, with a market value of $19 billion, is poised to outperform the Magnificent Seven by 2030, as smaller market cap stocks require less profit growth, showcasing its strong competitiveness in AI infrastructure.
- Energy Advantage: IREN has a 3-gigawatt development pipeline, particularly with its Sweetwater 1 and Sweetwater 2 projects in Texas set to launch in 2024 and 2027, respectively, ensuring its leading position amid surging AI computing demands.
- Revenue Growth Potential: OpenAI's computing needs are projected to rise from 200 megawatts in 2023 to 1,900 megawatts by 2025, and as an AI infrastructure provider, IREN is well-positioned to meet this demand, directly driving its revenue growth.
- Intensifying Industry Competition: With tech giants like Meta and Microsoft ramping up investments in AI computing capabilities, IREN's multi-gigawatt development pipeline and rapid market readiness are expected to make it a major winner in the industry, further solidifying its market position.
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