Why Cipher Mining Stock Gained 10.3% This Week

Core Insights - Cipher Mining's stock has increased by 10.3% as of October 16, with a notable weekly gain of 24.7%, despite Bitcoin's decline of 7.2% during the same period [1][2] - The company's stock has surged by 282% over the last two months, driven by a strong mining report and a significant contract unrelated to crypto-mining [2][4] - Cipher signed a 10-year agreement with Fluidstack, an AI system-training specialist backed by Google, which has contributed to the stock's rise [3] Business Strategy - Cipher is diversifying its operations by adding AI-training services alongside its Bitcoin mining activities, creating multiple revenue streams [4] - The company resells excess power when it is more profitable than its AI and Bitcoin operations, showcasing a flexible business model [4] - Despite the growth in operations, Cipher's stock is considered expensive at 43 times trailing sales, and the company remains unprofitable, selling about 16% of its mined Bitcoin to cover expenses [5]