One of the big moves, not only today, but over the past week has been crypto mining (CIFR 17.86%), is on the radar of many investors.This relatively small cap player in the world of Bitcoin Mining surged 23.9% at 1pm ET since last Friday’s close.
The final catalyst for this increase appears to be the renewal that investors are still pricing from two weeks ago. The company is building his fourth data center, increasing his bitcoin mining capacity by 84% in December. This equates to a maximum capacity of about 6.6 bitcoins per day for him in the current state.
Institutional interest in VanEck Associates’ cypher mining has also helped boost the stock. A recent report on the 13F filing shows that other institutional investors are also interested in his Cipher, suggesting that the company could become a player to watch in the space.
It’s important to keep this weekly movement in context. Cipher’s share price is still down about 50% over the past year, driving down Bitcoin’s price and eroding margins and profitability prospects.
Cipher is not the only cryptocurrency miner to see a decline, most of its peers have also experienced significant declines. That said, the company’s earnings outlook and institutional demand may point to this as a stock with medium- to long-term upside potential worth considering.
For investors Cryptocurrency In the mining sector, this kind of catalyst could put stocks on the watch list.
Crypto miners are often one of the first places traditional investors look to as a way to measure their exposure to the crypto sector with liquidity. This is because these publicly traded companies are much easier to trade and can provide real cash flow, allowing investors to evaluate companies from a fundamental perspective.
For Cipher and its bitcoin mining peers, a key input that determines much of the value of these companies is the value of bitcoin. Earnings this year are much more visible than they were near the end of 2022, as the token’s price has recently shown stability. crypto sector.
Chris McDonald I do not have any positions in any of the stocks mentioned. The Motley Fool has a position in and recommends Bitcoin. The Motley Fool has Disclosure policy.