Cipher Mining Inc (NASDAQ: CIFR) announced a landmark $3 billion artificial intelligence (AI) hosting agreement with Fluidstack today.
The 10-year deal includes financial backing from Google as well – indicating strong institutional interest in CIFR’s pivot toward high-performance computing.
Yet, despite the headline-grabbing partnership, Cipher Mining stock fell nearly 10% this morning, reflecting investor skepticism about execution and valuation.
That said, CIFR shares remain up a whopping 450% versus their year-to-date low at writing.
Why Fluidstack deal failed to lift Cipher Mining stock
While the Fluidstack deal is ambitious, investors remain cautious about Cipher Mining’s ability to deliver on its AI hosting promise.
The company’s current infrastructure is optimized for Bitcoin mining, not AI workloads, which require vastly different cooling, networking, and compute configurations.
Retrofitting existing facilities or building new ones will take time, capital, and technical expertise.
Moreover, Cipher is yet to disclose a clear timeline for deployment or revenue realization from the Fluidstack agreement.
Without operational proof points, markets are treating today’s announcement as aspirational rather than accretive. Until investors see tangible progress, CIFR stock may struggle to hold gains.
CIFR shares are already trading at a massive premium
As stated earlier, Cipher Mining shares have been in a sharp uptrend over the past five months – suggesting upside related to Fluidstack deal and Google’s financial backing may already be priced in.
At the time of writing, CIFR shares are trading at a price-to-sales (P/S) ratio of nearly 37 – which trumps the multiple on the best-of-breed AI stocks – even including Nvidia – that’s currently going for 33 only.
Moreover, investors believe the Nasdaq-listed firm may have to raise capital to fund infrastructure upgrades – diluting its existing shareholders in the process.
And it’s not like crypto stock pays a dividend to incentivise ownership despite these risks.
Simply put, there’s limited visibility into what the Fluidstack deal may mean for CIFR’s earnings. Google’s involvement does add credibility – but it doesn’t guarantee profitability.
Investors should also note that several AI infrastructure plays have seen short-term pops followed by steep corrections. In Cipher’s case, lack of clarity on immediate financial impact is prompting a valuation reset.
Should you invest in CIFR shares today?
Cipher Mining’s pivot toward artificial intelligence hosting is bold and potentially transformative, especially with Google’s backing.
But the market is demanding more than vision – it wants execution, clarity, and near-term revenue. Until CIFR proves it can transition from BTC mining to enterprise-grade AI infrastructure, investor may remain on the sidelines.
In fact, even insiders have aggressively unloaded Cipher Mining stock over the past 12 months – further dimming the appeal of owning them in the second half of 2025.
In short, the Fluidstack agreement may be a step in the right direction, but it’s not yet a catalyst for sustained upside in Cipher Mining stock.
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