Cipher Mining Inc. (NASDAQ:CIFR) is one of the best high short interest stocks with biggest upside potential. On January 27, Keefe Bruyette analyst Stephen Glagola raised the firm’s price target on Cipher Mining to $22 from $13 and kept an Outperform rating due to a positive outlook on the company’s transition into AI infrastructure. The firm updated its financial model ahead of Cipher’s Q4 2025 report to account for favorable hash price trends and the successful execution of its AI colocation strategy, sp ...

Core Insights - Cipher Mining has transitioned from being solely a Bitcoin mining company to focusing on high-performance computing (HPC) as of late 2024, although it still relies on Bitcoin mining for revenue currently [1] - The company earned $164.2 million from Bitcoin mining in the first three quarters of 2025, indicating its current financial dependence on this sector [1] Group 1: Business Strategy and Contracts - Cipher Mining has secured significant contracts in the HPC space, differentiating itself from other mining companies that have also pivoted towards AI and HPC data centers [3] - In September 2025, Cipher entered a 10-year HPC colocation agreement with Fluidstack valued at approximately $3 billion, with potential extensions bringing the total to around $7 billion [4] - In November 2025, Cipher signed a 15-year lease agreement with Amazon Web Services (AWS) for AI workloads, worth approximately $5.5 billion [5] Group 2: Financial Performance and Market Position - Cipher's stock has increased by 255% over the past year, trading at 32 times trailing sales as of January 12, indicating a high valuation despite potential rapid sales growth in 2026 [5] - The agreements with Fluidstack and AWS could generate hundreds of millions of dollars in annual revenue for Cipher, highlighting its growth potential in the rising demand for AI infrastructure [6]