bullish

Cipher

Bitcoin

Analysts at H.C. Wainwright &amp; Co. believe Cipher’s recent acquisition in Texas will enhance its strategic operations. 
Cipher recently announced the acquisition of a 300 MW development site in West Texas, increasing its total energy pipeline to over 2.5 GW across 10 locations, according to analysts at H.C. Wainwright. 
The deal, valued at $67.5 million or $225,000 per MW, also includes a $3 per MWh variable fee for the first five years post-energization. This acquisition is notable for its front-of-the-meter capacity, a fully energized substation, and 250 acres of surrounding land. 
While the company’s management did not provide details on construction and energization timelines, they highlighted the site’s potential for high-performance computing infrastructure and Bitcoin (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>) mining.&nbsp; 
 You might also like: <a href="https://crypto.news/telegrams-pavel-durov-freed-from-custody-awaits-court-ruling/"> Telegram’s Pavel Durov freed from custody, awaits court ruling </a> 
<h2 class="wp-block-heading" id="acquisition-details">Acquisition details </h2> 
The analysts view the acquisition as a strategic move to secure low-cost power in West Texas, a region known for its attractive energy pricing, likely ranging between 2 and 3 cents per kWh.&nbsp; 
The full build-out of the site could require an additional $67.5 million, assuming its use for BTC <a href="https://crypto.news/tag/mining/" target="_blank" data-type="link" data-id="https://crypto.news/tag/mining/" rel="noreferrer noopener">mining</a>. 
The research firm reiterated their Buy rating of Cipher’s stock, with a $7 price target, reflecting a 7.0x market cap-to-revenue multiple on their 2025 revenue estimate of $313.5 million. However, risks include BTC price volatility, increasing network hash rates, and potential shareholder dilution. 
At the time of writing, Cipher’s stock, ticker CIFR, is trading at $3.70. 
 You might also like: <a href="https://crypto.news/bitcoin-mining-stocks-stay-weak-as-options-market-hints-at-rebound/"> Bitcoin mining stocks stay weak as options market hints at rebound </a>

Analyst remains bullish on Cipher after 2.5 GW energy expansion in Texas

Table of Contents

crypto.news

Other articles published on Aug 28, 2024

Dogwifhat Price Prediction: WIF Plunges 12% As Investors Rush To Buy This P2E DOGE Before It’s To...

Polygon (MATIC) Suffers the Worst Losses in Latest Market Dip

XRP to $5? Bollinger Bands Signal Biggest Breakout

Sony Unveils Ethereum Layer-2 Blockchain 'Soneium' to Accelerate Web3 Adoption

Which Crypto Will Break $1 First: Dogecoin (DOGE), Kaspa (KAS) or Rollblock (RBLK)?

Elon Musk Supports Controversial California AI Regulation Bill

Join our free newsletter for daily crypto updates!