Cipher Mining (CIFR) is up 28.2% after Google-backed AI data centers traded with Fluidstack

• FluidStack recently announced its 10-year high-performance computing colocation agreement as crypto mining. Under that, Cipher is supported by a USD 1.4 billion leasebackstop from Google and a USD 1.4 billion leasebackstop guaranteeing a roughly 5.4% stake in Cipher Mining.
• The collaboration positions crypto mining, accelerating the pivot from Bitcoin mining to AI-centric data center infrastructure, leveraging both key external capital and large client commitments.
• We'll explore how Google's substantial investment and lease support can reshape the Cipher Mining investment narrative and growth profile.

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Summary of the Crypto Mining Investment Story

To become a shareholder in today's crypto mining, you must believe in your ability to move from the pure play of Bitcoin mining to a diverse AI and data center powerhouse. While the recently announced Google-backed Fluidstack deal could serve as a meaningful short-term catalyst for equities by providing significant new revenue visibility and capital access, the biggest risks will be implemented in these next-generation HPC projects, enabling real tenant demand. Otherwise, the upside down expected from the pivot can prove elusive.

Of Cipher's recent announcements, the US$1.3 billion convertible note stands out directly in relation to funding these infrastructure ambitions. With this funding, the company will provide more runways to build the Barber Lake site and other HPC developments. This is important for providing promises built into new contracts, such as Fluidstack agreements.

In contrast, investors should also note that slow tenant ramp-ups or underutilized AI infrastructure is possible…

Read the complete story about cryptomining (free!)

By 2028, Cipher Mining's storyline project is $696.2 million, revenues of $91.1 million and profits of $91.1 million.

It reveals how Cipher Mining's forecast will bring a fair value of $11.38 and is downside at 23% of the current price.

Explore other perspectives

A simple Wall St Community estimate shows the fair value of crypto mining ranging from US$30 to US$30 or more per share based on seven independent perspectives. Contrary to this diversity, the need for actual revenue from AI data center tenants is a common thread that allows you to determine whether optimism or attention wins.

Explore 7 other fair value estimates for crypto mining – why is inventory worth more than twice as much as it is now!

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