Cipher Mining Inc

Netlist, Cipher Digital, and Hut 8 are gaining attention as overlooked stocks poised to benefit from AI infrastructure demand. Netlist secured a five-year licensing deal with Samsung that includes a $239 million upfront fee and up to $32.9 million in quarterly license fees, with Samsung also purchasing 10 million shares. Cipher Digital began collecting rent this month from its 300-megawatt Black Pearl site leased to Amazon and obtained an option for a 900-megawatt site near San Antonio, expanding its gigawatt pipeline. Hut 8 has secured 949 megawatts of contracted IT capacity expected to generate $1.75 billion in net operating income, with its Beacon Point site fully commercialized under two 352-megawatt IT leases.

Morgan Stanley projects a 38-gigawatt electricity gap for U.S. data centers, leaving up to an 11-gigawatt deficit through 2028 even after all practical solutions are deployed. The investment bank estimates that natural gas turbines could provide 15 to 20 gigawatts of that capacity, making GE Vernova the clearest beneficiary given its dominance in large-frame gas turbines and a multiyear data center order backlog. Other potential solutions include fuel cells, co-located nuclear plants, and repurposed Bitcoin mining sites, but Morgan Stanley's base case still shows a supply shortfall. Companies such as Bloom Energy, Constellation Energy, Vistra, Talen Energy, Core Scientific, IREN, and Cipher Mining also stand to benefit from the power crunch. The analysis suggests the AI industry's biggest obstacle has shifted from semiconductor supply to electricity supply, with owners of existing power assets poised to capture significant value.

Alphabet's projected capital expenditures of up to $205 billion this year are expected to benefit three AI-related companies. Cipher Digital, which builds and leases AI data centers to hyperscalers, stands to gain from increased demand for its co-location model that offers flexibility for custom chips like Alphabet's Tensor Processing Units. Broadcom, the designer of Alphabet's TPUs, will see more sales as Alphabet expands its custom chip business, adding to Broadcom's already strong AI semiconductor revenue that grew 143% year over year. Micron's memory chips, used in TPUs and other AI processors, will also see higher demand, supported by multiyear deals and ongoing supply shortages that boost margins.

Treasury Secretary Scott Bessent said the Clarity Act is at the '1-yard line', urging Congress to pass the landmark bill before recess, which sent bitcoin and other cryptocurrencies higher on Tuesday. Bitcoin rose 2.08% to $66,559, Ethereum added 1.00% to $1,922, and Dogecoin gained 1.62% to $0.073. Crypto stocks surged, with Cipher Digital up 18.01% to $24.24, Coinbase Global up 11.70% to $179.20, Riot Platforms up 8.64% to $21.62, Robinhood Markets up 8.58% to $107.80, MARA Holdings up 8.10% to $12.62, Circle Internet Group up 7.90% to $70.62, Hut 8 up 7.81% to $108.81, CleanSpark up 7.66% to $15.53, Bullish up 6.83% to $24.24, Figure Technology Solutions up 6.31% to $32.34, Bakkt up 5.22% to $8.26, IREN up 4.71% to $42.10, Gemini Space Station up 4.33% to $4.70, and Strategy up 3.67% to $101.41.

Rosenblatt Securities analyst Chris Brendler said the recent selloff in high-performance computing-linked stocks was overdone, creating a buying opportunity in Galaxy Digital and Cipher Digital. Galaxy Digital had fallen 22% over the prior two weeks while Cipher Digital dropped 13% as of the note's publication on July 2. The selloff intensified after a July 1 Bloomberg report that Meta Platforms was building a cloud operation aimed at outside customers, raising concern it could become a competitor in the neocloud stack. Brendler dismissed the fear, writing that the firm does not view the Meta news as a negative demand signal and pointing to a colleague's assessment that the story appeared company-specific with no indication of a shift in contracted demand. He highlighted Galaxy Digital's direct exposure to CoreWeave, with its Helios data center campus expanding the partnership by an additional 133 megawatts of critical IT load, leaving CoreWeave committed to the site's entire 800-megawatt gross-power approval. On Cipher Digital, Brendler said the pullback widened a persistent valuation disparity and framed the decline as a cheaper entry into the miner-to-HPC pivot theme without signaling deteriorating fundamentals.

Cipher Digital's wholly owned subsidiary, Stingray Compute LLC, has raised $810 million through a secured debt offering. The notes carry a 6% interest rate and mature in 2031, with the offering closing on June 15, 2026. Proceeds will fund completion of the Stingray data center, repay approximately $61.5 million in prior parent-company investments, and cover future interest and debt payments. The debt is secured by most assets of the Stingray facility and guaranteed by Cipher Stingray LLC, with Cipher Digital providing a completion guarantee and committing additional funds if needed.

TradersPro published a bullish thesis on Cipher Digital Inc., a bitcoin mining company that operates large-scale data centers powered primarily by renewable energy. The thesis highlights Cipher's cost-efficient model, expanding infrastructure, and favorable industry trends such as growing institutional adoption of digital assets and spot bitcoin ETFs. Cipher's stock was trading at $26.21 as of June 16th, with trailing and forward P/E ratios of 59.75 and 85.47 respectively. The analysis notes that 49 hedge fund portfolios held CIFR at the end of the first quarter, up from 43 in the previous quarter.