Is Cipher Digital Inc. (CIFR) A Good Stock To Buy Now?

Is CIFR a good stock to buy? We came across a bullish thesis on Cipher Digital Inc. on Global Equity Briefing’s Substack by Ray Myers. In this article, we will summarize the bulls’ thesis on CIFR. Cipher Digital Inc.'s share was trading at $18.04 as of April 21st. CIFR’s trailing and forward P/E were 59.75 and 85.47 respectively according to Yahoo Finance.

Cipher Digital (CIFR) is transitioning from a Bitcoin mining operator into an AI data center developer, positioning itself to benefit from a massive global buildout in compute infrastructure driven by AI demand. The company currently operates 807MW of capacity, with 74% already allocated to AI data centers and the remainder to Bitcoin mining, which is increasingly being scaled down and repurposed.

Its legacy mining business provides steady cash flow, supported by competitive efficiency and favorable energy costs, but management is clearly prioritizing higher-return AI opportunities where its expertise in power procurement, infrastructure development, and energy-efficient design can generate superior returns. CIFR is focused on the colocation model, building and leasing high-performance data centers to large tenants rather than competing in more complex AI cloud services.

This strategy emphasizes stable, long-term contracts with hyperscalers and reduces operational complexity. The company has secured major agreements, including a 15-year $5.5B deal with Amazon Web Services and a 10-year $3B partnership involving Fluidstack and Google, validating demand for its infrastructure and enabling attractive project-level financing with strong levered returns.

CIFR’s development pipeline totals 3.37GW, implying substantial future scale, but also significant capital requirements of up to $27B, which will likely necessitate a mix of debt and equity funding and could lead to dilution.

Financial projections suggest the company could reach $4B in revenue and $565M in net income by 2030, supporting meaningful upside from current levels if execution remains strong. Overall, CIFR represents a capital-intensive but strategically positioned play on AI infrastructure, with a risk-reward profile driven by execution, financing conditions, and sustained industry growth.

Previously, we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted the company’s transition from Bitcoin mining to a scalable AI cloud platform supported by renewable energy, strong GPU economics, and a debt-free balance sheet. IREN’s stock price has appreciated by approximately 395.28% since our coverage. Ray Myers shares a similar view but emphasizes on CIFR’s colocation-focused model and hyperscaler-driven infrastructure scaling.

Cipher Digital Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held CIFR at the end of the fourth quarter which was 40 in the previous quarter. While we acknowledge the risk and potential of CIFR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CIFR and that has 10,000% upside potential, check out our report about this cheapest AI stock.