On Thursday, H.C. Wainwright increased the price target for Cipher Mining (NASDAQ:CIFR) shares to $6.00 from $5.50, while maintaining a Buy rating on the stock.
The firm noted that Cipher Mining has raised its 2024 hash rate guidance by 45%, presenting a new outlook that is fully funded and largely de-risked.
Cipher Mining announced significant upgrades to its mining fleet at the Odessa facility and revised its hash rate targets for 2024 and 2025.
The company has amended a contract with Bitmain, which includes faster delivery of miners and an upgrade to the more efficient S21 Pro miners instead of the originally ordered T21s.
Cipher Mining is now aiming for a self-mining hash rate of 13.5 EH/s with a fleet efficiency of 18.6 J/TH by the end of 2024, marking a substantial increase from the current 29 J/TH. This target represents a 45% increase from the previous 2024 guidance of 9.3 EH/s.
The first batch of the newly purchased miners will be deployed at the fully operational Odessa facility, replacing older and less efficient mining equipment.
Additionally, Cipher Mining has raised its year-end 2025 outlook by approximately 40% to 35 EH/s from the former target of 25.1 EH/s.
The company anticipates having the full 300 MW at Black Pearl energized by the end of 2025, which will be sufficient to support the new year-end target, incorporating the deployment of the high-performing S21 Pros. Once the recently acquired miners are operational, the company expects its fleet-wide efficiency to improve to 15 J/TH.
The market responded favorably to these developments, with Cipher Mining's shares closing 5% higher on the day, outpacing the Nasdaq's 2% gain.
H.C. Wainwright estimates that Cipher Mining's fleet will be 15% more efficient than its peers by the end of 2024. The firm also cited the company's low power costs as a factor that positions Cipher Mining to continue generating some of the best unit economics in the industry.
In other recent news, Cipher Mining Inc. has announced significant upgrades to its mining capabilities, including revised contracts with Bitmain and Canaan to expedite the delivery of new mining rigs.
These developments are part of the company's strategy to boost its self-mining hash rate and scale its operations.
Cipher Mining has also reported robust financial results for the first quarter of 2024, with substantial increases in revenue and net earnings.
Analyst firm Compass Point has adjusted its outlook on Cipher Mining, lowering the stock price target to $7.50 from $8.00, while maintaining a Buy rating.
The adjustment followed Cipher Mining's first-quarter earnings report, which showed revenues and adjusted EBITDA aligning with expectations.
Despite the company's strong financial performance, Compass Point noted that Cipher Mining's position in the market remains favorable due to its competitive power and hash costs.
In addition to these financial results and analyst notes, Cipher Mining is also focusing on expanding its production capacity, with its Black Pearl site expected to be fully operational by 2025.
The company's expansion strategy includes potential acquisitions to further drive growth. These are among the recent developments for Cipher Mining.
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