Investing

Cipher Mining (NASDAQ: CIFR) Has 124% Upside According To This Wall Street Analyst

Joshua Rodriguez

Published: October 7, 2024 3:39 pm

When you think of mining, you likely think of companies that use massive tractors and other equipment to dig deep holes in the earth and extract metals and minerals. However, technological innovation is changing the way we think about many things. Today, mining can speak to the traditional earth-moving activities mentioned above or it can relate to digital mining. 

Digital mining is the process involved in producing cryptocurrencies like Bitcoin and Ethereum. The concept is simple. Cryptocurrency miners typically use software to solve complex mining equations, adding new blocks to the blockchain to validate transactions. They then receive cryptocurrency in exchange for their work on the blockchain – and some companies are bringing this type of mining to the industrial scale. 

That’s where Cipher Mining (Nasdaq: CIFR) comes in. The company is dedicated to the expansion of Bitcoin mining infrastructure in the United States. And if you’re looking for an entrance into the space, this is one stock you should be watching. In fact, at least one analyst believes the stock will climb by more than 120% in the next year. 

Key Points:

• Cipher Mining is a Bitcoin mining infrastructure company that has the potential to produce significant growth for investors. 
• While the average price target is $7.42, at least one analyst expects the stock to grow to be worth $9 within the next 12 months. 
• If you’re looking for stocks to buy low and sell high, you’ve got to check out our new Discover “the Next NVIDIA” report to learn about two stocks we believe have the potential to grow by 10X or more ahead.  

What Is Cipher Mining?

Cipher Mining is a digital mining company that’s specifically focused on the development and expansion of Bitcoin infrastructure in the United States. In layman’s terms, that means the company builds and operates data centers filled with Bitcoin mining machines that are capable of solving the complex mathematical equations involved in mining the cryptocurrency. 

As of June of this year, the company had 78,000 mining machines in operation. So, what does that mean in terms of dollars and cents? In September of this year, Cipher Mining mined a total of 155 Bitcoin. At the current price of $63,126.50 per Bitcoin, that means the company produced $9,784,607.50 in value during September.  

All told, the company is currently holding about 1,512 Bitcoin. So, its current holdings are worth about $95,447,268. With the continued expansion of its mining efforts and effective mining practices, it’s hard to ignore Cipher right now. 

What Do Analysts Think?

At the moment, 10 analysts are weighing in on the stock, giving it an average price target of $7.42 per share. However, analysts at Cantor Fitzgerald have a more bullish opinion of what to expect with a $9 price target. If they’re correct, the stock could climb by more than 124% in the next year. The stock is up 57% over the past year but is off its 52-week high of $6.78 it hit this past July.