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Cipher Mining Stock Skyrockets: Is the Bitcoin Rally Sustainable?

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Written by Timothy Sykes Reviewed by Jack Kellog Fact-checked by Ellis Hobb
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Cipher Mining Inc.’s stocks are seeing a boost amid significant news of expanding their operational capacity and securing key partnerships in the cryptocurrency sector; on Wednesday, Cipher Mining Inc.’s stocks have been trading up by 7.28 percent.

Highlights of Recent Developments

  • Stifel upped Cipher Mining’s target price to $10, spurred by a Bitcoin price surge coinciding with Trump’s pro-crypto election results.

Candlestick Chart

Live Update At 11:36:56 EST: On Wednesday, November 27, 2024 Cipher Mining Inc. stock [NASDAQ: CIFR] is trending up by 7.28%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • A sweeping 29% jump in Cipher Mining shares followed the remarkable mining of 168 Bitcoins in the previous month.

  • Newly acquired Stingray site in West Texas offers up to 100 MW capacity, boosting future growth potential.

  • Macquarie lifts their Cipher Mining outlook to $7.25, buoyed by AI and HPC demand amid the Bitcoin rally.

  • With Bitcoin nearing $100,000, Cipher Mining’s profitability for higher-cost producers gains, moving BTIG to raise the stock target to $9.

Rapid Performance Review

Trading is not just about gaining profits; it’s about maintaining and growing them over time. Successful traders understand that their journey doesn’t end once they earn money. As millionaire penny stock trader and teacher Tim Sykes, says, “It’s not about how much money you make; it’s about how much money you keep.” This wisdom emphasizes the importance of strategic planning and financial savvy, ensuring that earnings are not just fleeting gains, but also sustainable and protected wealth in the trading world. By focusing on prudent management of profits, traders can secure their financial future regardless of market fluctuations.

Cipher Mining’s most recent earnings report unveiled a story of mixed fortunes. Although the third quarter’s adjusted EPS of (1c) surpassed the estimates of (8c), it was paired with revenue figures falling short at $24.1M against expectations of $29.22M.

This company’s strategic push to acquire new sites, aiming to become a top-tier data center developer globally, is notable. So far, their vision aims for 10 sites with a total 2.5 GW capacity, a bold target if realised, may redefine market standards and valuations.

Financially, Cipher’s profitability remains elusive with profit margins remaining negative, yet they’ve shown strong gross margins and operational leverage within their unique business model. Interestingly, their risk assessment shows a minimal debt burden, indicating conservative financial management that may provide stability amidst such tumultuous industry cycles.

Stock activity paints a volatile picture. With earlier price hits soaring past 24% growth upon positive news, the pattern yesterday diverged, showing consolations as investors likely digested the full spectrum of recent developments.

News Articles Influencing Market Changes

Stifel’s Endorsement and the Trump Factor

In what may be considered the most significant catalyst, Stifel’s bullish outlook comes after a Bitcoin price inflation fueled by a pro-crypto political outcome. Stifel’s price target adjustment wasn’t just about following trends. It underscores the believed synergy between political climates and techno-financial instruments, raising a question of longevity in both political and financial landscapes.

Cipher Mining’s October Mining Feat

Cipher Mining triumphantly emerged with 168 Bitcoins in October. This achievement dramatically pushed investor confidence, lifting stock prices by over a quarter, setting new highs. However, one must ponder whether this optimism holds as operations scale or if other unforeseen technicalities might dash such expectations.

More Breaking News

Expansion into West Texas: The Stingray Move

Cipher’s crafty expansion into West Texas with a 100 MW site announcement could be an ace towards achieving their megawatt-savvy dreams. Entering a new capacity frontier invites investor curiosity, yet still demands thorough execution for turning ground promises into palpable power.

Bitcoin’s Rally and Analyst Reactions

Analyst recalibrations, coinciding with Bitcoin’s climb to near-historic highs, have reshaped forecasts. Why is this important? Amidst soaring Bitcoin prices, one considers whether the tailwind can bear Cipher Mining across industry’s challenges. Particularly, BTIG’s forecast reflects on strategic production profitability, key when considering sector volatility’s omnipresence.

Echoes of Financial Fortunes: Is Stability Ethereal or Enduring?

The whirlwind of events, depicted in financial journals and CFO narratives, circles back to a core question: is Cipher Mining surfing a sustainable wave, or is this surge buoyed by ephemeral market euphoria?

Cipher Mining boasts an asset turnover reflecting its fast asset utilization approach, complementing a reasonable return on equity and capital. However, questions linger over the recurring cashflow dips observed within their financial chronicles.

Crucially, maintaining shareholder faith amidst such backdrop will require not just operational growth, but delivering on promises of expansive capacity — ensuring those who have marvelled at recent peaks aren’t caught off-guard by future valleys.

Concluding Remarks: A Portal to Future Prospects

As we close the chapter on recent developments, the path forward for Cipher lies in harnessing the current excitement into sustained corporate growth. Yet, it remains imperative for traders to tread thoughtfully among the peaks and troughs, understanding the broader narratives and intricate subsidiaries, as with any crypto-related venture. As millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” This advice is particularly relevant, as the allure of Cipher’s strategic pivots dare stakeholders to either bear within or withdraw wisely—both choices needing unclouded forethought. Such stories aren’t just about quick wins; they resonate akin to literary corollaries, offering ethical insights into navigating ebbs and flows, both seen and unparalleled.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”