Cipher Mining Secures AI Hosting Deal, Raises Price Target to $16
- Cipher Mining (CIFR) announced an AI hosting deal with Fluidstack, backed by Google, for its Barber Lake facility.
- The company also launched a $1.1 billion convertible note offering, priced at a 0.00% coupon.
- These moves may significantly impact the company's trajectory, according to Canaccord Genuity.
- Canaccord reiterated its buy rating on CIFR stock and increased the price target from $12 to $16.
- The agreement aligns Cipher with the "miner pivot-to-AI" trend, showcasing demand for large-scale AI compute.
- The convertible note funding allows Cipher to retain full ownership of Barber Lake without equity dilution.
- Additional AI deals are anticipated, with significant capacity still available at Barber Lake for future contracts.
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