Cipher Mining: Ignore Earnings, Focus On The AI Future
Cipher Mining, rebranding as Cipher Digital, is pivoting from bitcoin mining to AI data center leasing, with major contracts secured. CIFR has $9.3 billion in long-term leases with AWS and Google, covering only a fraction of its 4+ GW power capacity, highlighting substantial future monetization potential. Despite near-term revenue gaps and execution risk, CIFR trades at 10x NOI from existing leases, with significant upside as additional contracts are secured. Future lease announcements and successful hyperscaler data center operations are key catalysts, while risks include execution uncertainty and potential shifts in data center demand. Cipher Mining Inc. ( CIFR ) recently entered the AI data center race, so quarterly results were expected to be volatile until the business scales. The company has signed substantial leases for data centers, but investors have to be patient with leases not starting until end of this year. My investment thesis is more Bullis...