13 Hot Stocks to Buy with the Highest Upside Potential

10. Cipher Mining Inc. (NASDAQ:CIFR)

Potential Upside: 71.56%

Number of Hedge Fund Holders: 40

Cipher Mining Inc. (NASDAQ:CIFR) is one of the 13 hot stocks to buy with the highest upside potential. On February 9, Morgan Stanley started covering Cipher Mining Inc. (NASDAQ:CIFR) with an Overweight rating and a price target of $38, suggesting that Bitcoin companies with established data centers such as Cipher Mining will likely draw interest from infrastructure investors who value long-term, stable cash flows, especially if they manage to secure long-term leases to creditworthy counterparties for their established data centers.

In its report on the stock, Morgan Stanley compared Cipher Mining Inc. (NASDAQ:CIFR)’s business model to data center REITs like Equinix and Digital Realty, but cautioned that Bitcoin companies’ data centers likely won’t reach the same multiples as other pure-play data center companies due to more limited growth potential. The analyst also suggested that contracted data centers developed by Bitcoin companies should ultimately be owned by REIT-like investors who appropriately value long-term, low-risk contracted cash flows.

Cipher Mining, Inc. operates as a Bitcoin mining ecosystem in the U.S. and develops a cryptocurrency business.