Morgan Stanley Puts $54 Price Target on Cipher Digital After Amazon Lease Deal
Cipher Digital has seen its price target raised by Morgan Stanley to $54 from $43.50, while maintaining an Overweight rating.
This increase is largely due to a significant lease agreement with Amazon Web Services (AWS) at the Black Pearl site, which will provide about 300 megawatts of power for 15 years.
Cipher began delivering capacity in August 2026, two months ahead of schedule, and rent has commenced. This deal adds another validation point to Cipher's pivot from Bitcoin miner to AI-infrastructure landlord.
The bull case is that Cipher can monetize land and electricity at infrastructure-like contract values rather than crypto-cycle multiples due to the scarcity of powered sites with interconnection rights.
However, there are concerns about financing and execution. A long lease only becomes valuable after the data center is built, commissioned, and delivered on schedule, which can be affected by construction overruns, equipment lead times, or a higher cost of capital.