Analysts at H.C. Wainwright & Co. consider Cipher’s latest acquisition in Texas will improve its strategic operations.
Cipher just lately introduced the acquisition of a 300 MW improvement website in West Texas, rising its whole vitality pipeline to over 2.5 GW throughout 10 places, in accordance 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 payment for the primary 5 years post-energization. This acquisition is notable for its front-of-the-meter capability, a completely 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 positioning’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 recognized for its enticing vitality pricing, possible ranging between 2 and three cents per kWh.
The complete build-out of the positioning may require a further $67.5 million, assuming its use for BTC mining.
The analysis agency reiterated their Purchase ranking of Cipher’s inventory, with a $7 value goal, reflecting a 7.0x market cap-to-revenue a number of on their 2025 income estimate of $313.5 million. Nevertheless, dangers embody BTC value 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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