Wells Fargo initiated coverage on Cipher Digital (Nasdaq: CIFR) with an overweight rating and a price target of $25 on Sep. 16, Investing.com reported. Since the CIFR stock closed at $16.72 y
Wells Fargo initiated coverage on Cipher Digital (Nasdaq: CIFR) with an overweight rating and a price target of $25 on Sep. 16, Investing.com reported.
Since the CIFR stock closed at $16.72 yesterday, Wells Fargo's price target represents an upside of around 50%.
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Cipher Digital, formerly Cipher Mining, began as a Bitcoin miner before pivoting to AI operations in recent years, like most of its peers.
Bitcoin's price dropped significantly, energy costs rose, and the rewards also fell after the halving. These factors, along with the AI boom, led to Bitcoin miners like Cipher Digital turning to AI, as they already have a data infrastructure.
In September 2025, Cipher Digital signed a $3 billion AI hosting deal with Fluidstack, backed by Google’s $1.4 billion guarantee.
In November 2025, the company inked a $5.5 billion, 15-year deal with Amazon Web Services (AWS) to supply power and space for AI workloads.
But Cipher hasn't completely abandoned Bitcoin mining operations. When it reported its Q2 2026 financial results last month, it disclosed a Bitcoin mining revenue of $24.83 million and a loss of $0.65 per share.
As of June 30, the company held 37,802 BTC on its balance sheet.
As per Wells Fargo, Cipher Digital's AI deals with AWS and Fluidstack (with Google credit support) add about $10 of value to each share of the CIFR stock on a net present value basis.
Cipher Mining’s leases should deliver mid-teens net operating income yields, above costs of capital, upon delivery, as per the firm.
Wells Fargo characterised Cipher Mining as a high-risk, high-reward investment, seeing significant upside if the company can deliver on its pipeline.
As a result, the firm granted Cipher Digital an overweight rating and a price target of $25.
The CIFR stock was trading at $17.22 at the time of writing.
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