Cipher Mining (CIFR, Financial) has set the terms for its public sale of $150 million in convertible senior notes due in 2030. The transaction is anticipated to conclude on May 22. Additionally, underwriters have been given a 30-day option to acquire up to an additional $22.5 million in notes to accommodate over-allotments.
Morgan Stanley leads as the sole bookrunning manager, while Keefe, Bruyette & Woods, a Stifel Company, serves as co-manager for this offering. Cipher Mining has the flexibility to settle conversions through cash, shares of its common stock, or a combination of both. The initial conversion rate is set at 224.9213 shares per $1,000 principal amount, translating to an approximate conversion price of $4.45 per share. This conversion price marks a roughly 30% premium over the $3.42 public offering price of the concurrent delta offering.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Cipher Mining Inc (CIFR, Financial) is $6.67 with a high estimate of $9.00 and a low estimate of $4.00. The average target implies an upside of 95.11% from the current price of $3.42. More detailed estimate data can be found on the Cipher Mining Inc (CIFR) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Cipher Mining Inc's (CIFR, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
CIFR Key Business Developments
Release Date: May 06, 2025
- Revenue: $49 million in Q1 2025, up 16% from $42 million in Q4 2024.
- Bitcoin Mined: 602 total, with 524 mined at the Odessa data center.
- Average Bitcoin Price: Approximately $93,500 per bitcoin in Q1 2025.
- Net Loss: GAAP net loss of $39 million, or $0.11 per share.
- Adjusted Earnings: $6 million, or $0.02 per share.
- Depreciation and Amortization: $43 million, a 20% increase from the prior quarter.
- Operating Capacity: 327 megawatts, with a pipeline expansion of approximately 2.8 gigawatts.
- Cash Position: Increased to $23 million as of March 31, 2025.
- Total Liquidity: $75 million as of March 31, 2025.
- Electricity Cost per Bitcoin: $23,379 at data centers, $20,899 at Odessa site.
- Unrealized Loss on Bitcoin Holdings: $20 million in Q1 2025.
- Realized Gains on Bitcoin: $12 million in Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cipher Mining Inc (CIFR, Financial) reported a 16% increase in revenue for Q1 2025, reaching $49 million, driven by higher bitcoin production and prices.
- The company achieved a 6.5% increase in bitcoin production at its Odessa data center, mining 524 bitcoins in Q1 2025.
- Cipher Mining Inc (CIFR) maintains a highly competitive power cost of $0.027 per kilowatt hour, contributing to its strong unit economics.
- The company has signed a term sheet with Fortress Credit Advisors, LLC for financing at Barber Lake, enhancing its data center development capabilities.
- Cipher Mining Inc (CIFR) has a robust pipeline with expected capacity expansion of approximately 2.8 gigawatts, positioning it for future growth.
Negative Points
- Cipher Mining Inc (CIFR) reported a GAAP net loss of $39 million for Q1 2025, impacted by a $20 million unrealized loss on bitcoin holdings.
- The company experienced higher depreciation expenses due to the full depreciation of new machines installed at Odessa, affecting bottom-line results.
- Despite revenue growth, Cipher Mining Inc (CIFR) faced a significant decrease in adjusted earnings year-over-year, from $63 million to $6 million.
- The company is navigating uncertainties related to tariffs on mining rig deliveries, which could impact future operations and costs.
- Cipher Mining Inc (CIFR) faces challenges in securing tenants for its data centers amid a competitive and evolving market landscape.
