Cipher Stock Jumps 12% as AI Pivot Gains Traction with new Hyperscaler Deal

The rally extends recent gains driven by investor support for the strategic pivot as the company positions itself as a developer of high-performance computing facilities for large technology client.

The announcement came alongside a new $200mn revolving credit facility to provide additional financial flexibility to support expansion. 

Shares were trading as high as $16.67 as of 14:15UTC - a 12% bump from the 24 Mar close of $14.86 - before falling back later in the day. At 19:40UTC, CIFR was changing hands for around $15.85.

AI valuation premium

The agreement covers a 15-year lease for a new high-performance computing data centre at one of its existing sites to mark its third artificial intelligence campus transaction, the press release said.

The structure aligns with previous agreements with large technology groups whereby long-term contracts provide predictable revenue streams and reduce exposure to volatile cryptocurrency markets even though the tenant was not disclosed.

The deal strengthens visibility on future earnings and reinforces the repositioning of Cipher as an infrastructure provider rather than a commodity-linked mining business. The market reaction indicates investors are increasingly valuing the company as part of the broader build-out of artificial intelligence infrastructure rather than a cryptocurrency proxy.

Mining under pressure

The move builds on an earlier decision by Cipher to exit certain Bitcoin mining operations and redeploy capital into data centre development.

That transition comes as mining economics have come under pressure from lower Bitcoin prices, rising competition and higher energy costs to push operators to seek more stable and long-duration revenue models.

Artificial intelligence-driven demand for compute capacity has created a surge in hyperscale data centre investment, by contrast. This offers miners with access to power and land a natural path to repurpose assets.