Earlier this month, Cipher Mining announced a 10-year artificial intelligence hosting agreement with Google-backed Fluidstack, backed by Google’s US$3.0 billion investment and projected to generate US$300 million in annual revenue, marking a shift from exclusive Bitcoin mining to supporting AI infrastructure from its Texas data centers.
This collaboration signals a material transition as Cipher leverages its data center assets to diversify into AI workloads, offering a path toward greater business resilience beyond cryptocurrency mining.
We’ll explore how diversifying into AI hosting alongside Google-backed Fluidstack could reshape Cipher Mining’s investment narrative and growth prospects.
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To own Cipher Mining stock today, you need to believe in both the growth of large-scale digital infrastructure and the company’s ability to expand beyond Bitcoin mining into artificial intelligence workloads. The recent US$3.0 billion Google-backed Fluidstack deal has the potential to reshape short-term catalysts by adding a major AI revenue stream, but it also introduces execution risk as the company shifts away from reliance on Bitcoin price cycles and faces the challenge of scaling new service lines.
Of the company’s recent developments, Cipher’s plan to double its authorized shares, up for vote at the special meeting on October 30, stands out as highly relevant. Any approval could provide funding flexibility to support its investment-heavy AI transition, but also raises the possibility of shareholder dilution, which remains a key issue with expanding capital-intensive growth strategies in this space. In contrast, investors should be aware that even as new AI revenues are touted, significant dilution may be ahead if…
Read the full narrative on Cipher Mining (it’s free!)
Cipher Mining’s narrative projects $696.2 million in revenue and $91.1 million in earnings by 2028. This requires 63.6% yearly revenue growth and a $245.1 million earnings increase from current earnings of -$154.0 million.
Uncover how Cipher Mining’s forecasts yield a $16.88 fair value, a 10% downside to its current price.
Seven community fair value estimates for Cipher Mining range from US$6.00 to US$30.94, highlighting wide opinion gaps among retail investors on future upside. While many bet on aggressive AI revenue growth, keep in mind dilution risk and ongoing capital needs could impact overall returns, it’s worth comparing several viewpoints before deciding what matters most to you.
Read More: Cipher Mining (CIFR) Is Up 10.5% After Google-Backed AI Hosting Deal With
