Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Investing

What made Cipher Mining (CIFR) stock rally 30% on Friday?

admin by admin
February 1, 2025
in Investing
0
What made Cipher Mining (CIFR) stock rally 30% on Friday?
0
SHARES
9
VIEWS
Share on FacebookShare on Twitter

Cipher Mining Inc (NASDAQ: CIFR) has received $50 million in investment from SoftBank which it said will help it build more data centers in the United States.

The Japanese investment firm bought over 10 million shares to become a “significant primary investor” in CIFR today.

Additionally, the Bitcoin miner signed a one-month exclusivity agreement with SoftBank this morning that disables it from selling its Barber Lake site to another party.

Cipher Mining stock rallied as much as 30% following the news on Friday.

What SoftBank investment means for CIFR

CIFR sees the new investment as a tailwind for its HPC data center development business.

High-performance computing data centers are specialized facilities designed to handle intensive computational tasks that require immense processing power. According to Tyler Page – the company’s chief executive:

This investment comes at a pivotal moment in Cipher’s growth trajectory, as we continue to attract attention for our pipeline of sites and innovative solutions in industrial-scale data centres.

Ultimately, the Nasdaq-listed firm wants to position itself as the leader in HPC systems.

Despite a sharp surge this morning, Cipher Mining stock that does not currently pay a dividend is still down more than 20% versus its high in mid-December.

Is it too late to invest in Cipher Mining stock?

The SoftBank news made analysts at JPMorgan reiterate their “overweight” rating on CIFR.

While $50 million may not be immensely significant in the context of HPC data centers, the investment “could be a sign of things to come,” they noted in a research note on Friday.

Simply put, the Japanese firm’s investment signals a broader interest in the emerging technology and that’s what makes owning Cipher Mining stock an exciting investment proposition at current levels.  

The news arrived only days after DeepSeek launched a new, open-source AI model that it claims is more powerful than any other LLM out there and requires significantly fewer resources to build and operate.

The Chinese startup’s announcement triggered a sharp sell-off in the US bitcoin mining stocks.

How Cipher did in its latest reported quarter

According to JPMorgan, the SoftBank deal “validates continued demand and interest in large sites with power agreements in place.”

The investment firm remains bullish on CIFR shares even though the company reported a not so encouraging financial results for its third quarter in early November.

Cipher Mining saw its revenue come in at $24 million in Q3 – down about 21% on a year-over-year basis as net loss widened by an alarming 390%.

At the time, CEO Tyler Page told investors:

We’ve created a pathway to become one of the largest data centre developers by finalising the purchase of options to acquire three new sites.

Note that at one point last year, CIFR was reported to be considering a sale after receiving a takeover bid.

The post What made Cipher Mining (CIFR) stock rally 30% on Friday? appeared first on Invezz

Previous Post

JPM raises Carvana stock target: how high could CVNA go in 2025?

Next Post

How will US tariffs affect the TLT and VGLT ETFs?

admin

admin

Next Post
How will US tariffs affect the TLT and VGLT ETFs?

How will US tariffs affect the TLT and VGLT ETFs?

Trending News

Goldman Sachs and BNY Mellon Tokenize Money Market Funds

Goldman Sachs and BNY Mellon Tokenize Money Market Funds

July 23, 2025
Ocado shares plunge £600M as cost-cutting plan signals market scepticism

Ocado shares plunge £600M as cost-cutting plan signals market scepticism

February 27, 2025
Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

July 19, 2025
Subscribe to Insightful Word


    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025
    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    August 28, 2025
    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    August 28, 2025

    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025

    Latest News

    • Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in
    • SentinelOne stock price forecast ahead of earnings: buy or sell?
    • Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.