Is Cipher Stock (CPHRF) a Good Buy?

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Contributor, Benzinga
September 27, 2023

Coinbase Global Inc. (NASDAQ: COIN) made its public debut some time ago via a direct listing, firmly establishing cryptocurrency's place in the mainstream financial world. Though the stock has experienced volatility, the interest in crypto remains robust. Cipher Mining Technologies, while not as well-known as Coinbase, offers a unique investment opportunity in the crypto sector.

Traditionally, investing in Bitcoin mining operations has been challenging, especially with the majority of mining concentrated in inaccessible regions like China. Cipher Mining changes this dynamic by offering investors a chance to share in the profits of a crypto-mining operation without dedicating their own computing resources. Stay updated on how to acquire Cipher stock, as it could be a valuable addition to diversified investment portfolios.

Vol / Avg.12.579K / 8.681KMkt Cap106.179M
Day Range4.700 - 4.70052 Wk Range2.200 - 5.375

Cipher Financial History

Cipher Mining Technologies is an offshoot of BitFury Group, which specializes in producing cryptocurrency mining hardware. Established in 2011, BitFury Group has unique expertise in the space thanks to its decade of experience in producing mining equipment. In just under 10 years, the company has mined over 600,000 Bitcoins.

Cipher Potential

Cipher has 2 strong tailwinds as a technology company:

  • Rapid adoption of Bitcoin and other cryptocurrencies into mainstream finance
  • Lack of reputable mining companies

Unlike the last crypto bull run, the utility of cryptocurrencies today far surpasses what was still in its infancy back in 2017. Bitcoin and Ethereum are assets with market caps comparable to the largest publicly traded firms in the world. Crypto has reached the mainstream, which means it could be a great time for a mining company to come public.

Cipher Mining wants to make itself the champion of U.S. cryptocurrency mining, and the competition isn’t exactly fierce. An overwhelming majority of Bitcoin is mined in China, which presents legal and regulatory hurdles for investors who wish to profit from miners.

By creating a large-scale mining firm in the U.S., Cipher gives investors access to a domestic company heavily involved in Bitcoin mining.

How to Invest in Cipher Stock

Interested in adding Cipher to your portfolio? The good news is that buying shares in Cipher is straightforward, especially when compared to other investment vehicles that typically require large initial investments. Keep in mind that the stock market can be unpredictable, so make sure to conduct thorough research before making any financial decisions.

Here’s how to get started.

1. Choose a Brokerage

Select a brokerage that aligns with your trading style. If you're an active trader, opt for platforms with comprehensive charting tools like TD Ameritrade or Interactive Brokers. For buy-and-hold strategies, discount brokers like Vanguard or Robinhood should suffice.

2. Determine Your Investment Size

Assess your risk tolerance and decide how many shares you wish to buy. This is particularly important in volatile sectors, so adjust your investment size based on your comfort level with risk.

3. Set Your Order Preferences

Since you're not constrained by time, use limit orders to obtain your preferred share price. Set your limit order based on your predetermined ideal price point.

4. Execute the Purchase

After your account is funded and your order is set, look for a good entry point using technical indicators such as support levels or moving averages. Execute your trade, and the shares will appear in your brokerage account.

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Cipher Brings BTC Mining to the United States

It’s never been easier to buy, sell or hold cryptocurrencies in the U.S. Not only that, but mainstream acceptance is rising as major American firms like PayPal, Square and Tesla have begun integrating cryptocurrency into their balance sheets and products. One area where the U.S. still lacks agency is in the mining sector.

Cipher Mining could become the centerpiece of Bitcoin mining in the U.S., with a massive complex of data centers and the backing of a crypto heavyweight like BitFury. U.S. investors will soon be able to reap the benefits of cryptocurrency mining without sacrificing their computing power to actually mine coins.

Frequently Asked Questions


Should you invest in crypto mining?


Investing in crypto mining requires consideration of factors such as risk tolerance, financial situation and knowledge of the cryptocurrency market. Thorough research and understanding of the complexities and risks are essential. Factors like equipment cost, energy consumption, regulations and market volatility should be evaluated. Consulting with a financial adviser or expert can also help in making an informed decision.


What is Bitcoin?


 Bitcoin is a decentralized digital currency that was created in 2009 by an unknown person or group of people using the name Satoshi Nakamoto. It is a form of cryptocurrency that operates on a peer-to-peer network, allowing users to send and receive payments without the need for a central authority or intermediary. Bitcoin transactions are recorded on a public ledger called the blockchain, which ensures transparency and security. Bitcoin has gained popularity due to its potential for anonymity, low transaction fees and the limited supply of coins that can be mined. However, it is also known for its volatility and the potential for its value to fluctuate.


Is Bitcoin mining risky?


Bitcoin mining is considered risky due to the high investment costs, increasing difficulty, price volatility, regulatory uncertainties, and security breaches that can result in financial losses. It is crucial to assess and manage these risks carefully.