Why Cipher Mining Stock Soared 12% Wednesday

Two bright new analysts take on the future Crypto mining (CIFR 12.21%) it was the news that pushed the company’s stock much higher on Wednesday. The Bitcoin the miner’s share price rose more than 12% during the session, a far better performance than a S&P 500 index down 0.2% on the day.

News of acquisitions is fueling optimism

The pair of new images come amid news that Cipher Mining has completed its latest rig acquisition. This was for a property in Barber Lake, Texas that will bolster its mining efforts. The company earns $67.5 million in cash, plus $3 per MWh for five years after the plant goes live.

In the initial press release trumpeting the acquisition, Cipher Mining CEO Tyler Page said its new property is “ideally suited to either host a large (high-performance computing) client or mine Bitcoin “.

Following the news, two firms initiated coverage on the Bitcoin miner’s stock. MacquariePaul Golding went a step further as he began covering the crypto-mining sector as a whole. Golding rates all miners now undercover as outperform (read: buy) and has set a price target of $6 per share on Cipher Mining.

The other mover was Northland, whose analyst Mike Grondahl also labeled Cipher Mining an outperformer at the same $6 per share fair value estimate. Grondahl expressed admiration for the Barber Lake deal, writing that the facility acquisition “kickstarts HPC efforts and brings its aggregate portfolio to more than 2.5 gigawatts across ten locations.”

A third analyst intervenes

Finally, one more bullish analyst than the two newcomers reiterated his existing view on Cipher Mining. That was Compass Point’s Joe Flynn, who still thinks the company is a buy, with a price target of more than $9 per share. In a new research note, Flynn said Barber Lake “extends Cipher Mining’s potential for HPC to 2026, or earlier, from initial expectations of around 2027-2028.”