Cipher Mining (CIFF) has just delivered one of the most consecutive weeks in its history, announcing a major IA accommodation agreement for its Barber Lake facilities and a convertible ticket offer of $ 1.1 billion, said that the company’s trajectory can redefine the company’s trajectory on Monday.
Canaccord reiterated its purchase rating on action and increased its price target to $ 16 against $ 12. The shares increased 1.2% at the start of negotiations to around $ 11.60.
While the market expected Cipher to secure an AI data center partner for Barber Lake before the end of the year, last week’s announcement went further than expected, according to the report. CIFR has signed an agreement with Fluidstack, supported by Google, confirming its place in the trend “Miner Pivot-to-Aai” which sweeps the industry.
Above all, the agreement has arrived during a burst of hyperscaler contracts and GPU cloud supplier, helping to validate the request for large -scale AI calculations and to rest certain concerns concerning market size, at least in the short term, analysts wrote by Joseph Vafi.
The positive feeling concerning Cipher’s prospects has been reflected in his course of action in recent months, giving the company a stronger currency for the capital lifting, analysts noted.
The $ 1.1 billion convertible ticket at a price last week at a 0.00% coupon, an unusual attractive capital cost, and should allow the company to keep the property of 100% Barber Lake, said Canaccord.
Management had previously indicated that it could be willing to sell participation in the project to reduce the lever effect. With a better pricing of the higher actions and fundamentals of the market, the company seems to be positioned to finance Barber Lake without abandoning equity.
More AI offers are likely. Barber Lake’s agreement does not cover the entire installation, leaving a significant capacity available for future contracts. With a 2.6 Gigawatt development pipeline (GW), under tensioning sites like Odessa and the Ramping Black Pearl could also see AI co-packaging agreements in the future, added the report.
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