Group 1 - Cipher Mining Inc. announced the acquisition of a new 200-megawatt site in Ohio, named Ulysses, marking its first site outside of Texas and reflecting its strategy to diversify geographically [1][3] - The Ulysses site covers 195 acres and has secured power capacity from AEP Ohio, with all necessary utility agreements and interconnection approvals in place, allowing participation in the PJM market [2] - With the Ulysses project, Cipher Mining's total development pipeline has expanded to 3.4 gigawatts across 8 different sites, enhancing its operational capacity [3]

Market Overview - The market is broadening beyond technology, with materials, defense, transports, and airlines showing strong setups as 2026 begins, while technology, particularly software, is lagging [1] - The start of 2026 is characterized as 'very' bullish due to increased market participation and breakout performances in certain sectors [1] Sector Analysis - The energy sector is identified as a 'fake out' with stocks hitting resistance levels and pulling back, suggesting caution before investing [2] - The materials sector is highlighted as a breakout from a year-long base, supported by silver, gold, and packaging stocks, indicating potential for further gains [2] - The defense sector is noted for a significant breakout, suggesting strong performance ahead [2] Small-Cap Stocks Outlook - The Russell 2000 has reached all-time highs and is on track for its eighth consecutive month of gains, creating a positive backdrop for small-cap stocks in 2026 [3] - Small-cap companies are economically sensitive and benefit from lower interest rates, but only about 1% of active long managers have been beating their benchmarks over the last 18 months [3] - Despite quality small-cap stocks underperforming, the long-term earnings growth setup for small caps is more favorable compared to mid-cap, large-cap, or MAG7 stocks [3] Stock Recommendations - A list of 10 promising stocks under $50 has been compiled based on high upside potential and popularity among hedge funds [6] - The strategy of imitating top stock picks from elite hedge funds has shown significant outperformance, with a return of 427.7% since May 2014 [7] Company Highlights - **Acadia Healthcare Company Inc. (NASDAQ:ACHC)**: Current share price is $13.67 with an average upside potential of 42.54%. The company is emerging from a 3-year downturn in underwriting, with expectations for margin recovery in managed care [9][10] - **Cipher Mining Inc. (NASDAQ:CIFR)**: Current share price is $16.90 with an average upside potential of 62.21%. The company has acquired a new 200-megawatt site in Ohio, diversifying its geographical footprint and enhancing its development pipeline to 3.4 gigawatts across 8 sites [13][14][15]

Group 1: Bitcoin Mining Developments - Hut 8 is seeking zoning approval for a proposed 500 MW data center in Logan County, Illinois, with an estimated cost between $4 billion and $5 billion [3][4] - Bitcoin mining stocks are restructuring leadership to focus on AI expansions, with Cipher hiring Lee Bratcher and Drew Armstrong, and Riot appointing Jason Chang as CFO [7] Group 2: Market and Policy Updates - MSCI has decided to retain Strategy in its global indices, which is significant for bitcoin treasury companies [5][6] - Florida is making another attempt to establish a strategic bitcoin reserve [2] Group 3: Bitcoin Mining Economics - Bitcoin mining revenue metrics are currently weak, with hash prices near all-time lows, and mining difficulty has trended downward, with four of the last five adjustments being negative [8]

Core Insights - ChargePoint has experienced a significant decline in stock price, dropping approximately 70% in 2025 and 99% over the past five years, indicating a failure to meet investor expectations in the electric vehicle (EV) charging sector [1] - In contrast, Cipher Mining has pivoted from Bitcoin mining to providing AI and data center infrastructure, positioning itself as a strong alternative for speculative growth investors [2][4] Company Performance - ChargePoint's stock has suffered due to a burst in the EV market bubble, leading to ongoing value loss [1] - Cipher Mining has signed multiple long-term contracts, including a notable 15-year deal with Amazon Web Services worth $5.5 billion, which is expected to enhance its revenue and profitability [6] Industry Trends - The EV infrastructure market faces challenges such as declining electric vehicle sales and the expiration of EV tax credits, while demand for AI infrastructure is increasing [5] - Cipher Mining's AI infrastructure pipeline includes 3.4 gigawatts, with only 300 megawatts allocated to the Amazon deal, highlighting strong demand compared to ChargePoint's stagnant EV infrastructure [6] Profitability Outlook - Neither ChargePoint nor Cipher Mining has reported full-year profits, but Cipher Mining is closer to achieving profitability, potentially in 2026, as new deals are expected to boost revenue and margins [7][8] - ChargePoint continues to face cash burn and multiple headwinds, making its path to profitability less clear compared to Cipher Mining's growth trajectory [8]

Core Viewpoint - Cipher Mining Inc. has appointed Lee Bratcher as Head of Policy and Government Affairs and Drew Armstrong as Head of Strategic Initiatives to strengthen its leadership team and support growth in the industrial-scale data center sector [1][4]. Group 1: Appointments and Roles - Lee Bratcher brings extensive experience in the Texas and federal energy regulatory landscape, having previously served as President and Founder of the Texas Blockchain Council, and will lead Cipher's energy policy strategy [2]. - Drew Armstrong, with a background as President and COO of Cathedra Bitcoin and a founding member of Galaxy Digital's bitcoin mining unit, will oversee strategic projects aimed at growth in the high-performance computing (HPC) industry [3]. Group 2: Company Strategy and Goals - Cipher aims to become a market leader in the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting, focusing on innovation and expansion [4]. - The addition of experienced leaders like Bratcher and Armstrong is seen as critical for accelerating Cipher's growth and enhancing its position in the AI and HPC data center industry [4].

Core Insights - Bitcoin mining companies that diversified into AI and high-performance computing (HPC) significantly outperformed traditional cryptocurrency miners in 2025 Group 1: Company Performance - IREN achieved a 285% return in 2025, leading the sector after signing a five-year agreement with Microsoft valued at approximately $9.7 billion for cloud computing services [2] - Cipher recorded a 218% increase following a 15-year lease agreement with Amazon Web Services and a separate $3 billion deal with Fluidstack, totaling $5.5 billion for hosting AI workloads [3] - Hut 8 saw a 124% return after announcing a $7 billion partnership with Anthropic and Fluidstack to develop AI data centers, with potential total contract value reaching $17.7 billion [4] Group 2: Underperforming Companies - Marathon Digital (MARA) ended the year down 46%, with Rosenblatt Securities lowering its price target due to high exposure to bitcoin mining and declining profitability [5] - Bitdeer experienced the largest decline among major miners, with a 48% loss attributed to a class action lawsuit regarding its SEAL04 chip development timeline [6] Group 3: Mixed Sector Performance - Other miners showed varied performance: Terawulf returned 103%, Bitfarms gained 58%, CleanSpark ended with a 10% gain, and Core Scientific rose 4%, while Hive fell 9% and Cango dropped 32% [7]

Core Insights - The article emphasizes the potential for mid-cap AI stocks to generate significant wealth as the AI industry continues to grow, highlighting the success of Nvidia as a benchmark for potential gains [2]. Group 1: Cipher Mining - Cipher Mining has transitioned to AI infrastructure, experiencing substantial growth, with its stock value tripling in 2025 [4]. - The company secured a 15-year, $5.5 billion deal with Amazon Web Services, providing 300 megawatts of capacity [6]. - Cipher Mining's energy pipeline has expanded to 3.4 gigawatts, allowing for the potential of 10 additional similar deals, generating approximately $367 million annually [7]. - The company aims to generate billions in annual recurring revenue by the end of 2026, indicating a strong demand for AI data centers across the U.S. [8]. Group 2: Ondas Holdings - Ondas Holdings, a mid-cap stock focused on AI-powered drones, saw its stock nearly quadruple in 2025, with a market cap of $3 billion [9]. - The company reported $10.1 million in revenue for Q3, marking a 60% quarter-over-quarter increase, and set a preliminary target of $110 million for 2026 [11]. - Ondas Holdings is actively acquiring companies to enhance its market position and has received $10 million in new autonomous systems orders, indicating strong commercial demand [12]. Group 3: Argan - Argan specializes in constructing AI data centers and currently has a record backlog of $3 billion, under contract for about 6 gigawatts of power-generating assets [14]. - Despite a slight dip in revenue year-over-year for fiscal Q3 2026, the backlog is expected to support accelerated revenue growth [16]. - The company has seen its stock more than double in 2025 and increase by approximately 600% over the past five years, reflecting strong market demand for AI infrastructure [17].

Core Viewpoint - Bitcoin has surpassed $88,000, leading to a rise in certain cryptocurrency mining stocks [1] Group 1: Company Performance - TeraWulf (WULF.US) has seen an increase of nearly 5% [1] - Applied Digital (APLD.US) has risen by over 3% [1] - Cipher Mining (CIFR.US) has gained more than 1.7% [1]

Core Viewpoint - Bitcoin has reached $88,000, leading to a rise in certain cryptocurrency mining companies [1] Company Performance - TeraWulf (WULF.US) has increased by nearly 5% [1] - Applied Digital (APLD.US) has risen by over 3% [1] - Cipher Mining (CIFR.US) has gained more than 1.7% [1]

Core Insights - Cipher Mining (CIFR) is advancing its AI and high-performance computing (HPC) expansion through long-term contracts and a rapidly scaling pipeline, reshaping its growth profile [1] Group 1: AI/HPC Expansion - During Q3 2025, Cipher Mining executed two significant AI/HPC transactions, including a 10-year hosting agreement with Fluidstack and a 15-year lease with Amazon Web Services (AWS), securing approximately $8.5 billion in contracted lease payments, with revenues expected to start in 2026 [2][9] - The company has successfully grown its contracted AI hosting capacity from zero to 544 MW in a single quarter, while maintaining a development pipeline of 3.2 GW extending through 2029 and beyond [3][9] Group 2: Revenue Growth and Estimates - AI revenues are anticipated to ramp up primarily from 2026, with a Zacks Consensus Estimate projecting a 15.69% revenue growth for that year, indicating expectations for accelerating contributions from the expanding AI/HPC platform [4] - For the full year 2026, the Zacks Consensus Estimate for loss is pegged at 88 cents per share, remaining unchanged over the past 30 days [14] Group 3: Competitive Landscape - IREN Limited is a competitor with a GPU-centric strategy, building a large-scale GPU cloud platform supported by a $9.7 billion Microsoft contract, aiming for over $500 million in AI Cloud ARR by early fiscal 2026 [5] - TeraWulf is emerging as a competitor through a long-term joint venture with Fluidstack, targeting long-duration contracts valued at $9.5 billion over 25 years, although its capacity expansion is back-end loaded, likely not online before 2026 [6] Group 4: Share Price Performance - Cipher Mining shares have increased by 207.7% over the past six months, significantly outperforming the Zacks Technology Services industry's gain of 20.9%, while the broader Zacks Business Services sector declined by 7.8% [7]