Cipher Mining (CIFF) has just delivered one of the most consistent weeks in its history, announcing an important AI accommodation agreement for its Barber Lake installation and an offer of convertible notes of $ 1.1 billion, the movements that together can redefine the company’s trajectory, said the genuity of Broker Canaccord on Monday in a report.
Canaccord reiterated its purchase rating in the share and increased its objective price to $ 16 of $ 12. The shares increased 1.2% in the first operations to around $ 11.60.
While the market expected Cipher to ensure a partner of the AI ​​data center for Barber Lake before the end of the year, the announcement of last week went beyond the expected, according to the report. CIFF signed an agreement with Fluidstack, backed by Google, confirming its place in the “miner pivot to AI” trend that is sweeping the industry.
Crucially, the agreement came during a burst of hyperscaleros and GPU cloud suppliers contracts, helping to validate the demand of the AI ​​on a large scale and take into account some concerns about the size of the market, at least in the short term, they wrote analysts led by Joseph Vafi.
The positive feeling around Cipher’s prospects has been reflected in the price of its shares in recent months, which gives the company a stronger currency for capital increase, analysts said.
The convertible note of $ 1.1 billion is priced last week with a coupon of 0.00%, an unusually attractive capital cost, and is expected to allow the company to retain 100% owned by Barber Lake, said Canaccord.
Management had previously pointed out that it could be willing to sell a project participation to reduce leverage. With improved capital prices and stronger market foundations, the company seems to be in a position to finance Barber Lake without giving up capital.
They are likely to be more offers. Barber Lake agreement does not cover the entire installation, leaving a significant capacity available for future contracts. With a 2.6 Gigawatt (GW) development pipe, energized sites such as Odessa and Pearl Black Ramping could also see the joint location agreements in the future, the report added.
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