Cipher Explores AI Market Amid Bitcoin Mining Operations, Canaccord Raises Target to $16

Cipher Mining Boosts AI Strategy, Canaccord Raises Price Target to $16 – 29/9/2025

Cipher Mining (CIFR) marked a pivotal week, announcing a major AI hosting deal for its Barber Lake facility alongside a $1.1 billion convertible note offering—moves that could significantly reshape the company’s strategic direction, according to Canaccord Genuity.

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

The AI partnership, which goes beyond market expectations, pairs Cipher with Fluidstack, backed by Google, cementing the company’s role in the growing “miner pivot-to-AI” trend. Analysts noted that the timing coincides with a surge in hyperscaler and GPU cloud provider contracts, validating near-term demand for large-scale AI compute.

Cipher’s strong share price performance also improves its capital-raising position. The $1.1 billion convertible note, priced at a 0.00% coupon, allows the company to retain full ownership of Barber Lake. Management had previously considered selling a stake to reduce leverage, but favorable equity pricing and stronger market fundamentals now enable funding without giving up equity.

Analysts expect additional AI deals. The Barber Lake facility has remaining capacity, and Cipher’s 2.6 GW development pipeline, including energized sites like Odessa and the ramping Black Pearl facility, could accommodate further AI co-location agreements.