TLDR
- Cipher Mining stock jumped over 10% on Monday as three analysts raised price targets
- Company signed first high-performance computing contract with Fluidstack, worth $3 billion over 10 years
- Google backs Fluidstack and will provide $1.4 billion in financing for the partnership
- Cipher raised $1.1 billion through zero-coupon convertible notes
- Google received 5.4% pro forma equity stake and warrants for approximately 24 million shares
Cipher Mining (NASDAQ: CIFR) shares surged more than 10% on Monday, outpacing the S&P 500’s modest 0.3% gain. The impressive performance came after three separate analysts substantially raised their price targets for the Bitcoin mining company.
The stock movement was partly supported by Bitcoin’s own 3% price increase over the previous 24 hours. Bitcoin miners like Cipher often see their fortunes closely tied to the cryptocurrency’s performance.
H.C. Wainwright analyst Mike Colonnese delivered the most dramatic upgrade, raising his price target to $17 per share from $7.50. Rosenblatt’s Chris Brendler increased his target to $14 from $9, while Keefe, Bruyette & Woods analyst Bill Papanastasiou doubled his valuation from $6.50 to $13.
Canaccord Genuity also joined the group of bullish analysts, raising their price target to $16 from $12 while maintaining a buy rating. All analysts kept their buy-equivalent recommendations on Cipher Mining stock.
Strategic Move into AI Infrastructure
The wave of analyst upgrades follows Cipher Mining’s announcement of its first major high-performance computing contract. Last Thursday, the company revealed a 10-year agreement with artificial intelligence cloud platform developer Fluidstack.
The partnership represents a $3 billion contract over its duration and marks Cipher’s official entry into the AI infrastructure space. The deal covers 168MW of computing power at Cipher’s Barber Lake facility.
Google backs Fluidstack and will support the project with $1.4 billion in financing. As part of the arrangement, Google acquired warrants to purchase approximately 24 million Cipher shares, giving the tech giant a 5.4% pro forma equity stake in the company.
The Fluidstack agreement doesn’t utilize all available capacity at the Barber Lake facility. This leaves room for Cipher to secure additional AI hosting contracts at the site.
Financial Flexibility Through Convertible Notes
Cipher Mining successfully raised $1.1 billion through convertible senior notes due in 2031. The notes carry a zero percent coupon rate, providing the company with unusually affordable capital.
The offering exceeded the initially planned $800 million, with initial purchasers having an option to buy an additional $200 million in notes. This financing structure allows Cipher to maintain full ownership of the Barber Lake facility.
Management had previously suggested they might sell a stake in the project to reduce debt. The convertible note offering helps the company avoid equity dilution while funding its expansion.
The deal strengthens Cipher’s position for future capital raising efforts. The company’s rising share price over recent months has provided better currency for fundraising activities.
Analysts highlighted how the Fluidstack agreement validates demand in the large-scale AI compute market. They now view Cipher as a legitimate player in the evolving AI data center space.
Cipher Mining operates a 2.6 gigawatt development pipeline beyond Barber Lake. Other energized sites like Odessa and the ramping Black Pearl facility could attract future AI co-location deals.
The company joins other Bitcoin miners pivoting toward AI infrastructure, reflecting growing demand for computing power in artificial intelligence applications.
Cipher’s stock reached approximately $11.60 per share in early trading following the analyst upgrades. The recent convertible note offering was priced and settled in September 2025.
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