Key Takeaway:
- Cipher’s acquisition in Texas enhances strategic operations
- Acquisition of 300 MW development site in West Texas
- Front-of-the-meter capacity, energized substation, and land included
- Potential for high-performance computing infrastructure and BTC mining
- Secure low-cost power in West Texas for BTC mining
- Buy rating of Cipher’s stock with price target of $7
- Risks include BTC price volatility and potential dilution
- Cipher’s stock trading at $3.70
Cipher Acquires 300 MW Development Site in Texas
H.C. Wainwright & Co. analysts believe Cipher’s recent acquisition of a 300 MW development site in West Texas will enhance its strategic operations. The deal, valued at $67.5 million, includes a fully energized substation and 250 acres of surrounding land, making it notable for its front-of-the-meter capacity. Management highlighted the site’s potential for high-performance computing infrastructure and BTC mining.
Strategic Move to Secure Low-Cost Power
Analysts view Cipher’s acquisition as a strategic move to secure low-cost power in West Texas, known for its attractive energy pricing. The full build-out of the site for BTC mining could require an additional $67.5 million. The research firm reiterated their Buy rating of Cipher’s stock with a price target of $7, reflecting a market cap-to-revenue multiple on their 2025 revenue estimate of $313.5 million. Risks include BTC price volatility and potential shareholder dilution.
