Cipher Mining Strengthens AI Pivot with Major Deal, Canaccord Raises Price Target to $16 – 29/9/2025

Cipher Mining (CIFR) delivered one of its most consequential weeks yet, announcing a significant AI hosting agreement for its Barber Lake facility alongside a $1.1 billion convertible note offering—moves that could reshape the company’s strategic trajectory, according to Canaccord Genuity.

The brokerage maintained its buy rating on CIFR and raised its price target to $16 from $12. Shares climbed 1.2% in early trading to around $11.60 following the announcement.

While markets had anticipated Cipher securing an AI data center partner for Barber Lake before year-end, last week’s agreement exceeded expectations. CIFR partnered with Fluidstack, backed by Google, signaling its entry into the growing trend of “miner pivot-to-AI” initiatives sweeping the crypto mining sector.

The timing of the deal aligns with a flurry of hyperscaler and GPU cloud provider contracts, validating near-term demand for large-scale AI compute and easing concerns about market size, analysts led by Joseph Vafi noted.

Cipher’s recent share price gains have strengthened its capital-raising position. The $1.1 billion convertible note priced at a 0.00% coupon provides highly favorable financing, enabling the company to retain full ownership of Barber Lake, Canaccord added. Earlier, management had considered selling a stake to reduce leverage, but stronger equity pricing and market fundamentals now allow the project to be funded without giving up ownership.

More AI opportunities are on the horizon. The Barber Lake deal does not occupy the facility’s full capacity, leaving room for future contracts. Additionally, Cipher’s 2.6 GW development pipeline, including energized sites like Odessa and the ramping Black Pearl facility, could also attract AI co-location agreements, the report said.