Cipher Mining Soars 297% in 6 Months: Buy, Sell or Hold the Stock?

Cipher Mining CIFR shares have gained a stellar 296.7% over the past six months compared with the Technology Services industry’s growth of 17.1%. However, the broader Zacks Business Services sector declined 10.3% during the aforementioned time. The company has also outperformed its peers like Bitfarms BITF, Riot Platforms RIOT and Marathon Digital MARA over this period. While shares of Bitfarms and Riot Platforms have rallied 214.9% and 41.9%, respectively, Marathon Digital has declined 27.1%. Notably, Bitfarms, Riot Platforms and Marathon Digital are all diversifying beyond bitcoin mining by expanding into AI and high-performance computing data-center infrastructure.CIFR shares are riding on the company’s successful evolution from a pure-play bitcoin miner into a hyperscaler-backed AI infrastructure developer with growing relevance in the high-performance computing market.This shift is supported by long-term contracted revenues, access to scarce and scalable power assets and a strengthened balance sheet that improves financial flexibility and enhances long-term growth visibility.Six-Month Price PerformanceImage Source: Zacks Investment ResearchAfter the sharp run, investors must ask whether CIFR still offers an attractive entry. Here’s a look at the strengths and weaknesses.CIFR’s Multi-Year Contracts Boost Revenue VisibilityCipher’s strategic shift toward high-performance computing (HPC) is supported by long-term contracts that reduce uncertainty and improve visibility. During the third quarter of 2025, the company executed a 15-year data center campus lease with Amazon Web Services (AWS), covering 300 MW of capacity and representing approximately $5.5 billion in estimated contract value, with lease payments commencing in August 2026. The long contract term and phased rollout provide steady, predictable cash flows backed by a Tier-1 hyperscaler, strengthening CIFR’s long-term revenue outlook.This builds on Cipher’s earlier 10-year AI hosting agreement with Fluidstack, which is supported by a $1.4 billion performance backstop from Google. That deal adds about $3 billion in contracted revenues over the initial term, with extension options that could lift total value to roughly $7 billion over 20 years. Combined with the AWS agreement, these contracts represent approximately $8.5 billion in committed lease payments, significantly reducing revenue volatility versus bitcoin mining and reinforcing Cipher’s shift toward a hyperscaler-backed AI infrastructure model.Pipeline Expansion Improves CIFR’s Growth ProfileCipher has strengthened its long-term prospects by building a large-scale power and land pipeline for HPC workloads. During the third quarter of 2025, the company secured majority ownership (95%) in a joint venture to develop Colchis, a 1-gigawatt site in West Texas. The site benefits from a fully executed Direct Connect Agreement with American Electric Power, dual interconnection capability and up to 620 acres of land under option, with targeted energization in 2028 pending ERCOT approval. These attributes position Colchis as a premier location for hyperscale AI deployments.Beyond Colchis, the company controls a robust 3.2-GW development pipeline spanning 2025 through 2029 and beyond, including expansion opportunities at Barber Lake and additional sites under discussion with potential tenants. Management has indicated that strong hyperscaler demand and power scarcity are driving a prioritization of this pipeline toward HPC rather than bitcoin mining. This expanding, multi-year capacity roadmap significantly increases CIFR's scalability and supports long-term growth visibility.CIFR’s Earnings Estimates Show Mixed TrendWhile these developments improve CIFR's long-term outlook, they also introduce short-term financial headwinds in the form of elevated capital expenditures and transition-related costs that are reflected in current earnings expectations.The Zacks Consensus Estimate for CIFR’s 2025 loss is currently pegged at 36 cents per share, which has narrowed by a penny over the past 30 days. CIFR reported a loss of 14 cents per share in the year-ago quarter.The consensus mark for the full-year 2026 loss is pegged at 88 cents per share, widened by 18 cents over the past 30 days. CIFR projected a loss of 36 cents per share in 2025.Image Source: Zacks Investment ResearchBitcoin Volatility Remains a Key Risk for CIFRDespite its shift toward high-performance computing, Cipher remains meaningfully exposed to bitcoin price volatility. The company continues to generate revenues from its bitcoin mining operations and maintains bitcoin holdings on its balance sheet, making earnings sensitive to both realized and unrealized fair-value changes. Management has acknowledged that swings in bitcoin prices can materially affect operating results, cash flows and asset values, leaving CIFR’s financial performance closely tied to broader movements in the crypto market.The technical indicator is also bearish for Cipher as its shares trade below the 50-day moving average, which indicates limited upside in the near-term momentum for the stock.Image Source: Zacks Investment ResearchConclusion: Best to Maintain a Hold PositionCipher’s sharp rally reflects its transition into a hyperscaler-backed AI infrastructure player, supported by long-term contracts and a strong power pipeline that supports long-term growth. However, widening loss estimates for 2026, continued exposure to bitcoin price swings and weak near-term technical signals limit upside in the short term. While the opportunities for AI and HPC remain attractive in the long term, the current level of risk and valuation makes aggressive buying less appealing.Investors may be better off maintaining a wait-and-see stance on this Zacks Rank #3 (Hold) stock for now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report Riot Platforms, Inc. (RIOT): Free Stock Analysis Report Bitfarms Ltd. (BITF): Free Stock Analysis Report Cipher Mining Inc. (CIFR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks