Is Cipher Mining an Underrated Crypto Play?

Core Insights - Cipher Mining is transitioning from primarily crypto mining to securing long-term contracts with tech giants for AI data centers, with Amazon being a significant customer through a 15-year lease worth $5.5 billion [1] Group 1: AI and Tech Contracts - Cipher Mining is expected to win more contracts as it brings additional gigawatts online, currently holding a 3.4 gigawatt pipeline that remains largely unallocated [2] - The Amazon deal illustrates that Cipher Mining can secure contracts without immediate energy delivery, with part of the 300 megawatts promised to Amazon expected by July 2026 [9] Group 2: Crypto Mining Operations - Cipher Mining's crypto mining revenue has nearly tripled year-over-year to $71.7 million, although the segment remains unprofitable with a reduced operating loss of $37.6 million compared to $91.4 million in the same quarter last year [4] - The company holds $170 million in Bitcoin, providing direct exposure to Bitcoin price movements, unlike other miners who sell their mined Bitcoin immediately [5] Group 3: Expansion and Infrastructure - Cipher Mining has acquired a 200 megawatt site in Ohio, expanding its geographical footprint and increasing its total pipeline to 3.4 gigawatts across eight sites [7] - This expansion allows Cipher Mining to build its energy pipeline more rapidly while already having sufficient gigawatts to support future tech deals [8]