Cipher's Bitcoin Mining Business Remains Compelling, Canaccord Says

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Will Canny is CoinDesk's finance reporter.

Canaccord raised its Cipher Mining price target to $7 from $6 while maintaining its buy rating on the shares.mining business remains a standout in the sector in terms of exahash growth, operating performance and low power costs, broker Canaccord said in a research report on Wednesday.

The broker raised its price target for the bitcoin miner to $7 from $6 while maintaining its buy rating on the stock. The shares were 1.5% higher at $4.01 in early trading on Wednesday.

In another positive development, the bitcoin miner plans to"materially increase production efficiency" at its largest facility in Odessa, Texas, in the coming quarters, by upgrading its mining fleet, Canaccord said. The miner's recently acquired Reveille site brings"real artificial intelligence optionality to Cipher," the broker said, as the facility benefits from access to fiber, water for cooling, and a grid connection.

Next year's planned exahash expansion at the greenfield Black Pearl site, also in Texas, remains on track for completion, the report added.in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

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