Is Cipher Mining an Underrated Crypto Play?

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Cipher Mining (NASDAQ: CIFR) makes astir of its gross from crypto mining, but that's astir to change. The institution has been signing semipermanent deals with tech giants that request artificial quality (AI) information centers. Amazon (NASDAQ: AMZN) is 1 of Cipher Mining's largest customers aft it agreed to a 15-year lease worthy $5.5 billion.

Cipher Mining should proceed to triumph much contracts with tech companies arsenic it brings much gigawatts online. Cipher Mining inactive has a 3.4 gigawatt pipeline, and astir of that vigor hasn't been allocated to customers yet, which makes it a compelling banal to watch.

Although astir of Cipher Mining's communicative is astir its AI pivot, the company's crypto mining operations are besides gaining marketplace share. Cipher Mining's crypto mining gross astir tripled twelvemonth implicit twelvemonth to $71.7 million. The crypto mining conception remains unprofitable, but a $37.6 cardinal operating nonaccomplishment compared to a $91.4 cardinal operating nonaccomplishment successful the aforesaid 4th past twelvemonth shows advancement toward profitability.

Cipher Mining besides holds $170 cardinal successful Bitcoin (CRYPTO: BTC), giving it nonstop vulnerability to immoderate Bitcoin rallies. Other crypto miners instantly merchantability the Bitcoin that they mine, which limits their aboriginal upside from rising Bitcoin prices. In the adjacent term, however, Bitcoin's volatility and declining worth whitethorn not lend further to Cipher's bottommost line.

An expanding crypto mining concern with little operating losses volition marque it easier for the institution to standard into artificial intelligence, which is the bigger semipermanent communicative for Cipher Mining's rally.

Cipher Mining wrapped up 2025 by announcing it had acquired a 200 megawatt tract successful Ohio. This tract is expected to energize successful 2027 and bring Cipher Mining's full pipeline to 3.4 gigawatts crossed 8 sites.

This determination broadens Cipher Mining's geographical footprint, arsenic it represents its archetypal tract extracurricular of Texas. It tin assistance the institution rapidly physique its vigor pipeline arsenic it works to unafraid much deals with tech companies, but the institution already has plentifulness of gigawatts to spare.

The Amazon woody demonstrates that Cipher Mining doesn't request the gigawatts energized close distant to unafraid deals. Amazon volition person portion of the promised 300 megawatts successful July 2026, with the afloat transportation expected to beryllium completed successful fourth-quarter 2026. Rent volition commence successful August, truthful it volition instrumentality respective months earlier the Amazon woody translates into yearly recurring revenue.