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Cipher Mining: Future AI Data Center Powerhouse

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  • Cipher Mining has secured major AI data center leasing deals with AWS and Fluidstack, totaling billions in long-term contracted revenues.
  • The company is not providing AI compute services, instead acting as a power shell lessor, avoiding GPU risk but limiting upside to real estate-like returns.
  • Near-term revenue remains dominated by bitcoin mining; AI data center revenues begin in late 2026, with consensus projecting $1B in 2027 sales.
  • The stock trades at nearly 7x 2027 sales, faces substantial debt, and lacks near-term catalysts, making the stock a Neutral given long lead times for capacity expansion.
  • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More »

Cipher Mining Inc. (CIFR) recently entered the AI data center race with major deals with hyperscaler customers. The bitcoin miner is part of a group of companies transitioning from running data centers for crypto mining to focusing on AI data center capacity. My investment thesis is more Neutral on the stock since Cipher Mining has a long path to major capacity expansion.


Read the full article on Seeking Alpha. 

Disclosure: No postiion mentioned. Please review the disclaimer page for more details. 

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