Bernstein Holds Firm on $32 Price Target Despite Cipher Digital's Wider Loss

Bernstein analysts have maintained their optimistic view of Cipher Digital's prospects despite the company's wider second-quarter loss and subsequent stock decline.

The research firm, which has an outperform rating on Cipher Digital, is sticking to its $32 price target per share. This implies significant upside from current levels, reflecting Bernstein's confidence in the company's execution capabilities.

Cipher Digital, a U.S.-based Bitcoin mining company, has been expanding into AI data center infrastructure to diversify revenue streams beyond cryptocurrency mining. The wider Q2 loss reflects increased operational costs and investments in these new ventures.

The progress on contracted AI data center projects is seen as a key factor supporting Bernstein's price target. These contracts are progressing as planned, which underpins the firm's conviction in Cipher Digital's strategic direction.