Cipher Mining Inc. (CIFR): A Bull Case Theory

We came across a bullish thesis on Cipher Mining Inc. on The Edge Of Power’s Substack. In this article, we will summarize the bulls’ thesis on CIFR. Cipher Mining Inc.'s share was trading at $17.70 as of January 29th. CIFR’s trailing and forward P/E were 59.75 and 82.64 respectively according to Yahoo Finance.

Cipher Mining Inc., together with its subsidiaries, develops and operates industrial-scale data centers in the United States. CIFR has emerged as one of the clearest examples of how the AI-driven data center boom has transformed what were once traditional mining businesses into large-scale infrastructure developers. The company now operates inside a rapidly evolving ecosystem where power availability, land access, and speed of construction determine who can meet the surging demand from hyperscalers.

Its contracted and planned development portfolio has expanded to more than 3 gigawatts—capacity that was barely imaginable a year ago—and reflects how quickly miners adapted as AI workloads outpaced the ability of conventional data center operators to respond. This shift pushed Cipher and its peers into a new role: supplying the physical backbone of the AI economy by building industrial campuses for companies like Google, Microsoft, and Amazon.

This acceleration has also created new strategic debates across the sector. Companies must decide whether to lease out megawatts through colocation or deploy their own bare-metal compute and sell GPU hours directly. Both models are viable but imply very different assumptions about capital intensity, risk exposure, and how durable the AI cycle will be. The underlying concern for investors is whether infrastructure is being built faster than demand or into assets that saturate before generating returns.

Cipher’s edge comes from positioning itself early in West Texas, where power is the defining constraint. Miners recognized before hyperscalers that ERCOT’s unique structure—fast interconnection, real-time pricing, high renewable penetration, and the ability to monetize curtailment—would become the most valuable asset in the compute economy. By combining strategic land acquisition with expertise in flexible load management and long-term PPAs that stabilize volatile pricing, Cipher Mining has positioned itself as a new-era developer supplying the energy-intensive foundations of AI.

Previously we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted its shift from Bitcoin mining to scalable AI infrastructure, high-margin GPU operations, and a pristine balance sheet. The stock has appreciated approximately 556.14% since coverage. The thesis still stands as IREN’s modular design and power capacity support long-term growth. The Edge Of Power shares a similar view on Cipher Mining Inc., emphasizing its rapid West Texas expansion and role supplying hyperscalers’ AI infrastructure.

Cipher Mining Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held CIFR at the end of the second quarter which was 21 in the previous quarter. While we acknowledge the potential of CIFR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.