Cipher Mining Inc. (NASDAQ:CIFR) witnessed a significant decrease in its stock value on Wednesday after it revealed plans to issue $2.00 billion in senior secured notes. This development unfolded against a backdrop of mixed results in broader markets, with key indices such as the S&P 500 and Nasdaq experiencing declines of 0.21% and 1.25%, respectively.
The proposed notes, issued by Cipher Mining's wholly owned subsidiary Black Pearl Compute LLC, are aimed at institutional investors, particularly qualified buyers. Scheduled to mature in 2031, the notes are to be secured by first-priority liens on nearly all assets of the issuer and its guarantors, subject to prevailing market conditions.
The capital raised from this debt offering is targeted at completing the remaining expenditures for Cipher Mining’s Black Pearl Facility located in Wink, Texas. Additionally, part of the funds will reimburse Cipher Mining for earlier equity investments amounting to approximately $232.5 million. This facility, which Cipher signed an agreement for in November to establish 300 megawatts of gross data-center capacity, is expected to be leased to Amazon Web Services for a minimum period of 15 years.
Market reaction to this financial maneuver has been reflected in a downward trend in Cipher Mining’s shares. On the day of the announcement, the Technology sector suffered a 1.25% drop, signaling a challenging environment for technology-related equities, including Cipher Mining.
Analyzing Cipher Mining's technical indicators reveals the stock trading notably below key moving averages — 21.3% under its 20-day simple moving average (SMA) and 18.6% below its 100-day SMA. This positioning conveys a bearish short- to medium-term trading sentiment. The stock’s performance over the preceding twelve months has been strong, with a 135.80% increase; however, its current price lies closer to the low end of its 52-week range than the high.
The Relative Strength Index (RSI) stands at 36, a level regarded as neutral. This suggests the stock is neither in oversold nor overbought territory. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator sits below its signal line, further underscoring prevailing bearish momentum on the stock.
From a price support and resistance perspective, $13.50 represents a critical support level that traders are monitoring closely. Falling below this threshold could indicate an increased risk of further downside. Conversely, the $15.50 mark is considered a significant resistance barrier.
Regarding investor sentiment, short interest in Cipher Mining has decreased by 15.57%, with approximately 49.88 million shares shorted, equating to 16.7% of the company’s float. This reduction points to a shift away from bearish positioning, although the company still holds a higher short interest compared to its peer group average of 11.32%.
Looking ahead, Cipher Mining’s next earnings report is anticipated on February 24, 2026. Earnings per share (EPS) estimates have declined from 14 cents year-over-year to 3 cents, whereas revenue forecasts have risen from $42.22 million to $84.14 million year-over-year, illustrating expectations of significant top-line growth despite earnings contraction.
Analyst perspectives remain generally favorable, with the stock carrying a Buy rating and an average target price of $23.96. Notable recent analyst actions include:
- Keefe, Bruyette & Woods maintaining an Outperform rating with a price target raised to $22.00 as of January 27.
- Canaccord Genuity affirming a Buy rating and a target of $27.00 on December 15, 2025.
- JP Morgan upgrading the stock to Overweight, increasing the target to $18.00 on November 24, 2025.
Cipher Mining holds substantial weightings in several prominent blockchain-focused ETFs, including the Amplify Transformational Data Sharing ETF (NYSE:BLOK) at 4.75%, the Global X Blockchain ETF (NASDAQ:BKCH) at 5.15%, and the Fidelity Crypto Industry and Digital Payments ETF (NASDAQ:FDIG) at 5.46%. Consequently, large inflows or outflows in these funds could materially affect Cipher Mining’s stock through automatic adjustments.
At the close of trading on Wednesday, Cipher Mining shares declined 18.79%, trading at $13.20, according to data from Benzinga Pro.
Key Points:
- Cipher Mining announced a $2 billion senior secured notes offering to fund Black Pearl Facility construction and reimburse prior equity contributions.
- The company's stock price dropped significantly, in line with broader market technology sector weakness.
- Technical indicators show a bearish short- to medium-term trend, with the stock trading well below key moving averages.
- Analysts maintain a Buy consensus with price targets averaging $23.96, despite mixed earnings projections.
Risks and Uncertainties:
- The proposed notes offering is subject to market conditions, which may impact successful capital raise and terms.
- Stock trading near 52-week lows poses potential downside, with critical support at $13.50 under observation.
- Despite reduced short interest, overall levels remain elevated relative to peers, indicating continued bearish sentiment in some investor segments.
- Upcoming earnings forecasts show decreased EPS estimates despite higher revenue expectations, reflecting possible profitability pressures.