Analysts at H.C. Wainwright & Co. consider Cipher’s current acquisition in Texas will improve its strategic operations.
Cipher lately introduced the acquisition of a 300 MW improvement website in West Texas, rising its complete power pipeline to over 2.5 GW throughout 10 areas, in line with analysts at H.C. Wainwright.
The deal, valued at $67.5 million or $225,000 per MW, additionally features a $3 per MWh variable charge for the primary 5 years post-energization. This acquisition is notable for its front-of-the-meter capability, a totally energized substation, and 250 acres of surrounding land.
Whereas the corporate’s administration didn’t present particulars on development and energization timelines, they highlighted the location’s potential for high-performance computing infrastructure and Bitcoin (BTC) mining.
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Acquisition particulars
The analysts view the acquisition as a strategic transfer to safe low-cost energy in West Texas, a area identified for its engaging power pricing, probably ranging between 2 and three cents per kWh.
The complete build-out of the location might require an extra $67.5 million, assuming its use for BTC mining.
The analysis agency reiterated their Purchase ranking of Cipher’s inventory, with a $7 worth goal, reflecting a 7.0x market cap-to-revenue a number of on their 2025 income estimate of $313.5 million. Nonetheless, dangers embrace BTC worth volatility, rising community hash charges, and potential shareholder dilution.
On the time of writing, Cipher’s inventory, ticker CIFR, is buying and selling at $3.70.
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