Analyst Recommends Buying Cipher Mining Stock Following Mining Upgrade Anticipates 45 Increase
Cipher’s investment strategy is drawing positive attention from analysts at H.C. Wainright, who are forecasting a potential increase to $6. The recent announcement from Cipher Mining Inc. (CIFR) regarding an upgrade to its mining fleet in Odessa has resulted in a revision of its hash rate targets for 2024 and 2025, thanks to a revised contract with Bitmain. This development has prompted H.C. Wainright analysts to adjust their price target from $5.50 to $6, indicating a significant potential rise from the current trading price of $4.15.
The updated contract includes Bitmain’s latest S21 Pro miners, which will replace the originally requested T21s, leading to accelerated delivery timelines. As a result, Cipher’s self-mining hash rate target for 2024 has surged by 45% to 13.5 EH/s. Currently, CIFR is trading at $4.15 per share.
The future looks promising for CIFR as this upgrade will involve phasing out old equipment and deploying new miners at the Odessa facility, expected to enhance efficiency and cost-effectiveness significantly. By 2025, CIFR has raised its outlook by 40% to 35 EH/s, with expectations of reaching full power capacity at the Black Pearl site. Once operational, the fleet-wide efficiency is projected to hit 15 J/TH.
Following the update, CIFR’s stock experienced a 5% increase, outperforming the Nasdaq. With a focus on maintaining a 15% efficiency lead over competitors by the end of 2024, supported by low power costs, the company is poised for success.
H.C. Wainright analysts continue to endorse a Buy rating for CIFR, reflecting their confidence in the company’s strategic direction and execution.
