SoftBank has invested $50 million into Cipher Mining Inc. (NASDAQ: CIFR), which will allow it to build additional datacenters in the United States.
The Japanese investment company bought more than 10 million shares in CIFR to become a “significant primary investor” today.
The Bitcoin miner also signed an exclusivity contract with SoftBank today, which prevents them from selling their Barber Lake location to a third party.
Cipher Mining shares rose as high as 30 percent following Friday’s news.
SoftBank Investment and CIFR
CIFR views the new investment in its HPC Data Center Development business as a positive.
Data centers for high-performance computing are designed to perform intensive computations that demand a lot of processing power. Tyler Page, the chief executive of the company:
The investment is a crucial moment for Cipher, which continues to grow and attract attention with its pipeline of industrial data centers.
The Nasdaq listed firm wants to be the market leader for HPC Systems.
Even though the stock of Cipher Mining, which does not pay dividends at this time, is up more than 20 percent from its mid-December high.
When is it too late for me to buy Cipher Mining?
Analysts at JPMorgan have reiterated their “overweight rating” on CIFR in light of the SoftBank announcement.
In the context of HPC Data Centers, $50 million is not a huge amount. However, it could be an indication of what’s to come.
The Japanese investment in Cipher Mining signals an interest in emerging technologies. This is why owning Cipher Mining shares at the current price level makes for a very exciting investment.
This news came just days after DeepSeek released a new open-source AI that they claim is much more powerful than other LLMs and uses significantly less resources for development and operation.
A sharp drop in US Bitcoin mining stocks was triggered by the Chinese startup’s news.
Cipher’s latest quarter report
JPMorgan says that the SoftBank agreement “validates the continued interest and demand for large sites which have power agreements already in place.”
The firm is still bullish about CIFR even after the company’s third-quarter financial report was not very encouraging.
Cipher Mining’s revenue in the third quarter was $24million, down 21% from last year. The net loss also increased by 390%.
Tyler Page, the CEO at that time, told investors what he said:
By completing the acquisition of three sites, we’ve established a path to becoming one of the world’s largest data centres developers.
At one time last year it was said that CIFR had received a bid for a purchase and were considering a possible sale.
Why did Cipher Mining stock rise 30% last Friday? This post may change as new information unfolds
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