Cipher Digital Plummets 13.4%, Dragging Down AI Data Center Stocks

Cipher Digital Inc., trading on the NASDAQ under ticker CIFR, ended Wednesday's session at $17.69, down 13.4% from the previous day. This price drop wiped approximately $1.1 billion from its market capitalization based on initial estimates.

The company trailed five of its AI data center peers by just 0.7 percentage point in the comparison set, with an average decline of 12.7%. Bitcoin itself rose roughly 0.2% during the session.

Cipher Digital's market capitalization on Wednesday was $7.17 billion, which indicates a significant gap between its equity value and projected net operating income (NOI) for the future. According to estimates, the company's equity value is approximately 9.1 times its anticipated yearly NOI and about 51 times its annualized revenue from the first quarter.