Our Stock of the Week is Cipher Mining, Inc. (CIFR). CIFR describes itself as "an industrial-scale Bitcoin mining company dedicated to expanding and strengthening the Bitcoin network's critical infrastructure in the United States. Our mission is to provide the vital foundation required for the Bitcoin network to flourish.'
Like all bitcoin mining companies, the stock is correlated with the price of bitcoin, but what makes these stocks more interesting recently is that they also have great utility for the AI industry. What bitcoin miners possess is huge computing power that is needed to produce new bitcoin. That computing power can be harnessed for AI applications that also require massive computer power.
CIFR is particularly interesting because Bloomberg has reported that the company has received takeover interest 'as soaring demand for data centers makes Bitcoin miners takeover targets.' "The artificial intelligence boom has created an unprecedented shortage of data center space. As a result, crypto-mining companies, which already sit on the necessary infrastructure, are being targeted by AI firms looking to boost their computing capabilities via acquisitions."
There is no guarantee that CIFR will make a deal, but these miners will have the added benefit of being supported by bitcoin prices. There has been speculation recently that Donald Trump is increasingly friendly to the crypto market and is even scheduled to speak at a conference in the near future. That will provide support for CIFR even if no takeover deal is ever made.
As always, we will not chase strength on Monday, but we will aggressively trade the stock into volatility.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in CIFR. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
