Cipher (CIFR) Tumbles 13.5% on AI Bubble, Bitcoin Drop

We recently published 10 Stocks Facing Selling Pressure Ahead of Christmas. Cipher Mining Inc. (NASDAQ:CIFR) is one of the biggest losers on Monday.

Cipher Mining saw its share prices drop by 13.55 percent on Monday to close at $14.74 apiece as investors took path from the decline in Bitcoin prices and renewed concerns about an AI bubble.

Cipher Mining Inc. (NASDAQ:CIFR) declined alongside its peers, namely Terawulf,  Hut 8, and CleanSpark, after Bitcoin, as of writing, shed 2.27 percent of its value at $86,168 apiece. Traders appeared to be locking in early profits ahead of the Christmas holiday.

Further dragging sentiment was renewed pessimism over the AI sector, dragged by news that Oracle Corporation—one of the largest AI players globally—raked in as much as $108 billion in debt to spend on the said industry.

The scale of borrowing sparked worries among investors about how quickly it would be able to recoup its investments, and the concerns created a ripple effect into high-performance computing firms, including Cipher Mining Inc. (NASDAQ:CIFR).

The decline was despite Canaccord Genuity’s reaffirmation of its “buy” recommendation and $27 price target on Cipher Mining Inc. (NASDAQ:CIFR). The figure marked an 83 percent upside potential from its latest closing price.

In other developments, Cipher Mining Inc. (NASDAQ:CIFR) announced plans to officially redeem its outstanding warrants for $0.01 apiece until 5 PM on December 26, 2025. The warrants are only exercisable on a cashless basis.

Any warrants that remained unexercised by the deadline will then be void and no longer exercisable.

While we acknowledge the potential of CIFR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.