Cipher Mining Secures $2B Funding and Morgan Stanley Sets $38 Target
Morgan Stanley initiated coverage on February 9 with an Overweight rating and $38 price target, valuing Cipher Mining’s data center operations at 20X EV/FY1 EBITDA. On February 4, Black Perl Compute LLC issued $2B of 6.125% senior secured notes due 2031 to fund the Texas HPC facility and reimburse $232.5M.
1. Analyst Coverage Initiation
On February 9, Morgan Stanley initiated coverage of Cipher Mining with an Overweight rating and $38 price target, comparing its hybrid Bitcoin mining and data center model to REITs trading at 20X EV/FY1 EBITDA.
2. $2 Billion Senior Secured Note
On February 4, subsidiary Black Perl Compute LLC completed a $2 billion 6.125% senior secured note due 2031, allocating net proceeds to construct the Black Pearl high-performance computing facility in Texas and reimburse Cipher Mining $232.5 million for prior equity contributions.
3. Industrial-Scale Data Center Pivot
Cipher Mining operates industrial-scale Bitcoin mining data centers across the U.S. while pivoting toward high-performance computing infrastructure for AI, generating revenue from both mining operations and long-term hosting deals with infrastructure investors seeking stable cash flows.