Cipher (CIFR) is the latest Bitcoin (BTC) miner to pivot in AI; The target price has climbed to $ 16: Canaccord
The Cipher Mining (CIFR) has only delivered one of the most consequences to its history, announcing a major AI hosting deal for the Barber Lake facility and a $ 1.1 billion who offered a note, the moves together could specify the company’s trajectory, the Broker said Canaccord Genuity in a report on Monday.
Canaccord reiterated its purchase rating in stock and raised the target price to $ 16 from $ 12. Distributes rose 1.2% in early trading up to $ 11.60.
While the market expects Cipher to secure an AI Data Center partner for Barber Lake before the end of the year, the announcement last week went further than expected, the report said. CIFR ink an FluidsTack Agreement, which is supported by GoogleThat confirmed its place in the “Miner Pivot-to-Ai” trend that sweeps the industry.
Crucially, the deal came during a fuzzy contract of hyperscaler and GPU cloud provider, helping to prove demand for large -scale AI compute and putting to rest some concerns about market size, at least near the term, the analysts led by Joseph Vafi wrote.
Positive emotions around Cipher’s prospects have shown its sharing price over the last few months, giving the company a stronger currency for increasing capital, the analysts mentioned.
The $ 1.1 billion -changing note was priced last week at a 0.00% coupon, an unusual appealing -attractive cost of capital, and expected to allow the company to maintain 100% barber lake owner, Canaccord said.
The management has previously signed that it may be willing to sell a stake to the project to reduce action. Through improved equity pricing and stronger market foundations, the company appears to be positioned to fund the barber lake without giving up on equity.
Many more deals in AI are likely. The Barber Lake agreement does not cover the entire facility, leaving a significant capacity available for future contracts. With a 2.6 Gawinatt (GW) development pipeline, energized sites such as Odessa and the ramping Black Pearl can also see deals in future co-local, added the report.
Read more: Cipher prices mining $ 1.1b upsized convertible note offering
