Cipher Digital Inc. (NASDAQ:CIFR) shares are in the spotlight Wednesday, with earnings on deck, data center lease revenue and financing in focus, recent analyst activity and a technical setup showing an oversold stock all drawing attention.
- Cipher Digital stock is among today’s top performers. Why is CIFR stock surging?
Earnings Preview & History
Cipher is scheduled to report third-quarter earnings on Nov. 2 before the market opens. Analysts estimate a loss of 26 cents per share along with revenue of $38.51 million. For the prior quarter, Cipher reported a loss of 65 cents per share, missing the consensus estimate of a loss of 23 cents. The company also posted revenue of $24.84 million, missing the consensus estimate of $32.51 million.
What to Watch: Data Center Revenue Ramp, New Leases and Cash Burn
Investors will be closely tracking when lease revenue from the data center business starts to replace bitcoin mining revenue, which fell to $24.8 million in the second quarter from $43.6 million a year earlier as Cipher decommissions mining capacity. The Barber Lake lease with Fluidstack and Google, with rent set to start in October, and the Black Pearl lease with AWS, where initial capacity was delivered in August with rent beginning, are the key items. Cipher had about $11.4 billion of contracted revenue and 700 MW of contracted HPC capacity at the last update, and any new lease would add to that.
Financing will be in focus too, after Cipher announced a proposed $850 million convertible notes offering and an exchange of part of its 2030 notes last month, with proceeds earmarked for Barber Lake equity and its pipeline. Losses and cash burn, after a second-quarter net loss of $267.5 million, will also be watched.
Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price forecast of $28.50 (high: $51.50; low: $18.00) across 28 analysts. Recent analyst moves include:
- Cantor Fitzgerald: Overweight (Lowers Target to $19.00) (Oct. 16)
- Morgan Stanley: Overweight (Lowers Target to $51.50) (Oct. 12)
Cipher Is Down 57.5% in 12 Months, With RSI of 26.42 Signaling an Oversold Stock
Cipher is still in a clear longer-term downtrend, down 57.52% over the past 12 months, and it’s trading well below its major moving averages—about 24.3% below the 20-day SMA ($11.61) and about 50.9% below the 200-day SMA ($17.90). That kind of spacing typically tells traders rallies may face overhead supply quickly, especially near the first "trend" reference points like the 20-day and 50-day averages.
Momentum is the main story right now: RSI is 26.42, which signals the stock is oversold and the recent selling has become stretched. In plain terms, RSI helps gauge whether a move has gotten overheated to the downside, and readings below 30 often coincide with bounce attempts—even if they don’t always mark a durable bottom.
Trend structure remains bearish, with the 20-day SMA below the 50-day SMA and a death cross in September (the 50-day SMA crossing below the 200-day SMA). The stock also logged a swing low in October, and with price still not far above the $7.46 52-week low, traders will be watching whether this premarket strength can build a higher low versus that October trough.
- Key Resistance: $11.61 — the 20-day SMA is the nearest major overhead trend level
- Key Support: $7.46 — the 52-week low is the most obvious downside reference if selling resumes
Cipher Shares Trade Higher
CIFR Price Action: At the time of publication, Cipher shares are trading 3.49% higher at $8.77, according to data from Benzinga Pro.
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