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Cipher Mining (CIFR)
NASDAQ:CIFR
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Cipher Mining
(NASDAQ:CIFR)
42Neutral
Positive Factors
Business Expansion
Cipher Mining Inc. is expected to enter the higher-multiple HPC business, which should warrant a premium valuation.
Financial Performance
Cipher Mining Inc. reported solid financial results for 4Q24 and FY2024, which made its shares more attractive.
Growth Potential
Cipher's growth to date set to accelerate at Barber Lake, and then with more and nicely staggered energizations through 2027.
Negative Factors
Financing Challenges
There is a 'chicken and egg' problem occurring with SMID cap miners and HPC, where customers want financing before signing a lease, but financiers want a customer in place first.
Investor Sentiment
Despite strong financial results and potential opportunities, the stock tumbled 17.4% due to investor disappointment over the lack of a concrete AI deal announcement.
Price Target Adjustment
The price target is modestly lowered due to lower '25 adjusted EBITDA on lower bitcoin price estimates.
Cipher Mining (CIFR) vs. S&P 500 (SPY)
Market Cap
$889.36M
Dividend YieldN/A
Average Volume (3M)15.10M
Price to Earnings (P/E)―
Beta (1Y)2.60
Revenue Growth19.26%
EPS Growth-14.10%
CountryUS
Employees43
SectorFinancial
Sector Strength79
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-0.13
Shares Outstanding361,529,480
10 Day Avg. Volume12,613,615
30 Day Avg. Volume15,096,908
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.98
Price to Cash Flow (P/CF)-9.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.21Price Target Upside193.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Cipher Mining Business Overview & Revenue Model
Company DescriptionCipher Mining Inc., a technology company, operates in the bitcoin mining ecosystem in the United States. It engages in developing and growing a cryptocurrency mining business that specializes in bitcoin. The company was incorporated in 2021 and is based in New York, New York.
How the Company Makes MoneyCipher 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.25
Negative
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.65
Positive
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.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 126.84M | 3.04M | 0.00 | 0.00 | Gross Profit |
| -62.36M | 76.53M | 2.29M | -4.87K | 0.00 | EBIT |
| -95.02M | -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
Negative
2.46
Price Trends
4.01
Negative
4.94
Negative
4.72
Negative
Market Momentum
-0.55
Positive
32.19
Neutral
14.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIFR, the sentiment is Negative. The current price of 2.46 is below the 20-day moving average (MA) of 2.67, below the 50-day MA of 4.01, and below the 200-day MA of 4.72, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 32.19 is Neutral, neither overbought nor oversold. The STOCH value of 14.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CIFR.
Cipher Mining Risk Analysis
Cipher Mining disclosed 74 risk factors in its most recent earnings report. Cipher Mining reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cipher Mining Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $13.44B | 9.41 | 9.19% | 4.92% | 16.30% | -8.66% | |
61 Neutral | $364.87M | 7.63 | 9.19% | ― | 140.56% | ― | |
54 Neutral | $1.31B | ― | -6.15% | ― | ― | ― | |
49 Neutral | $701.36M | 12.96 | 56.54% | ― | ― | 75.74% | |
42 Neutral | $889.36M | ― | -7.61% | ― | 19.26% | -14.10% | |
41 Neutral | $1.02B | ― | -31.02% | ― | 102.30% | 45.44% | |
37 Underperform | $25.30M | ― | 242.25% | ― | ― | ― |
* Financial Sector Average
Performance Comparison
CIFR
Cipher Mining
2.46
-1.69
-40.72%
WULF
TeraWulf Inc
2.58
0.44
20.56%
BTBT
Bit Digital
1.90
-0.35
-15.56%
ARBK
Argo Blockchain
0.33
-1.19
-78.29%
IREN
Iris Energy
5.90
0.93
18.71%
FUFU
BitFuFu
4.30
<0.01
0.23%
Cipher Mining Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -50.40% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call for Cipher Mining reflected strong revenue growth, strategic investments, and significant expansion in hashrate, which were offset by increased operating expenses, a net loss for the year, and challenges related to electricity costs at joint ventures. The company's focus on expanding their data center development pipeline and securing investments indicates positive long-term prospects, despite some financial challenges.Highlights
Record-Breaking Revenue Growth
Cipher Mining reported a 75% quarter-over-quarter increase in revenue, reaching $42 million in Q4 2024, driven by the successful completion of the Odessa mining rig upgrade and Bitcoin price appreciation.
Significant Hashrate Expansion
Hashrate grew by 88% during the year, from 7.2 EH/s at the end of 2023 to 13.5 EH/s by the end of 2024, highlighting successful fleet upgrades and scaling efforts.
SoftBank Investment
Cipher Mining secured a $50 million investment from SoftBank, strengthening their ability to expand their data center development business.
Strong Adjusted Earnings
Adjusted earnings increased by $61 million to $107 million in 2024, with adjusted earnings per share rising to $0.33 from $0.17 in the previous year.
Low Electricity Costs
Cipher Mining maintained highly competitive all-in electricity costs of roughly $20,281 per Bitcoin produced, with a low weighted average power price of $0.027/kWh.
Strategic Land Acquisitions
Acquired 337 acres of land at Barber Lake, with potential expansion to 800 megawatts, enhancing their data center development pipeline.
Lowlights
Increased Operating Expenses
Operating expenses increased by $48 million in 2024, primarily due to depreciation and amortization expenses related to fleet upgrades and strategic growth initiatives.
GAAP Net Loss for 2024
Cipher Mining reported a GAAP net loss of $45 million for the year, with a loss per share of $0.14, compared to a net loss of $26 million in the previous year.
High Electricity Costs at Joint Ventures
The joint venture data centers' electricity costs were significantly higher at $34,542 per Bitcoin compared to the Odessa facility.
Short-Term Borrowings
Cipher Mining reported short-term borrowings of $32 million, indicating reliance on external financing to maintain liquidity while preserving Bitcoin inventory.
Company Guidance
In the fourth quarter of 2024, Cipher Mining reported significant growth, generating $42 million in revenue and achieving GAAP net earnings of $18 million, with adjusted earnings of $51 million, up $54 million from the previous quarter. The company's self-mining hashrate increased to 13.5 EH/s, with projections to reach at least 23 EH/s in Q3 2025. Cipher Mining's operational efficiency was highlighted by a competitive electricity cost of $0.027/kWh, contributing to a production cost of approximately $20,281 per Bitcoin. The company is expanding its infrastructure, with plans for a 300-megawatt data center at Black Pearl and potential expansion at Barber Lake to a total of 800 megawatts by 2029. Cipher Mining also secured a $50 million investment from SoftBank to bolster its data center development capabilities. The company continues to explore opportunities in both Bitcoin mining and high-performance computing (HPC) data centers, positioning itself for robust growth in the coming years.Cipher Mining Corporate Events
Business Operations and StrategyFinancial Disclosures
Cipher Mining Reports Strong Q4 2024 Financial Results
Positive
Feb 25, 2025
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.
Private Placements and FinancingBusiness Operations and Strategy
Cipher Mining Secures $50M Investment from SoftBank
Positive
Jan 30, 2025
On January 30, 2025, Cipher Mining Inc. announced a $50 million investment from SoftBank Group Corp. through a PIPE transaction, involving the purchase of approximately 10.4 million shares of Cipher’s common stock. This investment supports Cipher’s growth in HPC data center development and designates SoftBank as a significant investor, aligning with Cipher’s strategic goals in technology and AI innovation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.