Strong Analyst Support and Funding Boost Cipher Mining Inc. (CIFR)’s Outlook

Cipher Mining Inc. (NASDAQ:CIFR) is one of the best stocks to buy and hold for the next 6 months. On February 9, Morgan Stanley initiated coverage of Cipher Mining Inc. (NASDAQ:CIFR) with an Overweight rating and a $38 price target.

According to the investment bank, Cipher Mining is one of the Bitcoin mining companies well-positioned to benefit from a pivot to data centers. The investment bank expects Bitcoin companies with established data centers to naturally attract infrastructure investors who value long-term, stable cash flows. Consequently, Morgan Stanley compares Cipher Mining’s business model to data center REITs that trade at 20X EV/FY1 EBITDA.

Meanwhile, on February 4, the company’s wholly owned subsidiary, Black Perl Compute LLC, completed a $2 billion 6.125% senior secured note due 2031. The unit is to use net proceeds from the offering to finance the construction costs of the Black Pearl Facility, a high-performance computing data center in Texas. It will also use $232.5 million to reimburse Cipher Mining for its prior equity contribution.

Cipher Mining Inc. constructs and operates industrial-scale data centers in the U.S. for Bitcoin mining, while rapidly pivoting to become a major developer of high-performance computing (HPC) infrastructure for Artificial Intelligence (AI). The company, which is pivoting to hybrid operations, generates revenue from mining and long-term hosting deals.

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This article is originally published at Insider Monkey.