AMSTERDAM - Bitfury Group, a prominent blockchain technology firm, has finalized the distribution of approximately 9.6 million shares it held in Cipher Mining Inc. (NASDAQ:CIFR), as part of a plan outlined earlier in the year. The shares were transferred to various former and current Bitfury employees, contractors, and advisors who were part of the company's long-term incentive plans, in exchange for their past services.
The distribution saw about 7.1 million shares of Cipher common stock allocated to these individuals, while the remaining 2.5 million shares were sold on the open market to meet tax obligations related to the transfer. Following the transaction, V3 Holding Limited, which is the majority owner of Bitfury, now beneficially owns around 30% of Cipher's outstanding shares, inclusive of both V3 Holding Limited's direct holdings and the shares held by Bitfury.
Prior to the transfer, Bitfury held an 18% stake in Cipher with 59.3 million shares. Post-distribution, their holding has decreased to approximately 15.1% or 49.7 million shares. V3 Holding Limited's ownership remains at 15.3%, with the other shares outstanding rising to 69.6% of the total.
Val Vavilov, CEO of Bitfury, expressed pride in fulfilling the distribution plan, which he believes has diversified Cipher's shareholder base and positioned the company advantageously for future opportunities.
Bitfury, founded in 2011, is recognized as a leading full-service blockchain technology company, offering products and services across hardware, security, and software to support the Web 3.0 ecosystem.
The information for this article is based on a press release statement. It is important to note that forward-looking statements made by the company involve inherent risks and uncertainties. Bitfury's projections and intentions regarding its ownership of Cipher common stock and Cipher's future operations are based on estimates and assumptions that are subject to change. The company does not undertake any obligation to update forward-looking statements, and they should not be relied upon as a guarantee of future performance.
In other recent news, Cipher Mining continues to make strategic strides. The company has maintained its Overweight rating from Cantor Fitzgerald, with an emphasis on the firm's mining advancements and proactive power resource acquisitions. Cipher Mining reported mining 151 Bitcoin in August and holds 2,270 Bitcoin in total. The company has also increased its equity offering capacity to $725.7 million through an amended agreement with financial firms, including Cantor Fitzgerald & Co. and BTIG, LLC.
Cipher Mining's acquisition of a new 300 MW development site in West Texas for $67.5 million is part of its expansion strategy, which aims to increase its portfolio to over 2.5 GW across 10 sites. Analysts from firms such as H.C. Wainwright, Canaccord Genuity, Compass Point, and Needham have expressed positive assessments of the company's growth prospects, highlighting its plans to increase its hash rate to 35 exahashes per second by 2025 and its ventures into High-Performance Computing infrastructure.
Despite a net loss of $15 million in the second quarter, the company generated $37 million in revenues. Cipher Mining's future plans include significant operational expansions and the launch of a high-performance computing infrastructure business. These recent developments underscore Cipher Mining's strategic commitment to growth and operational efficiency in the industry.
InvestingPro Insights
In light of Bitfury Group's recent share distribution in Cipher Mining Inc. (NASDAQ:CIFR), investors may find the following insights from InvestingPro valuable for understanding the company's financial health and market position. Cipher holds more cash than debt on its balance sheet, which could provide some financial flexibility in its operations and future investments. Additionally, net income for Cipher is expected to grow this year, signaling potential for increased profitability.
From a financial metrics standpoint, Cipher Mining has a market capitalization of approximately $1.04 billion. Despite a high P/E ratio of 51.03, which suggests a premium on current earnings, the company's revenue has seen a significant growth of 182.55% over the last twelve months as of Q2 2024. This robust top-line growth is complemented by a gross profit margin of 65.08%, indicating the company's ability to retain a sizeable portion of its sales as profit after accounting for the cost of goods sold.
However, it's important to note that the stock has experienced notable price volatility, with a 1-month price total return of -23.59% and a 3-month price total return of -25.86%. This could indicate market uncertainty or investor reactions to company-specific events. For those interested in further analysis, InvestingPro offers additional tips on Cipher Mining, which can be found at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.