Cipher Mining Inc Sees Increase in Short Interest: What it Means for Investors
Cryptocurrency continues to experience both an upswing and volatility. Cipher Mining, a technology company specializing in bitcoin mining, has seen a large growth in short interest as of March 31st. The short interest totalled 8,290,000 shares – a growth of 6.3% from the March 15th total of 7,800,000 shares. Approximately 20.1% of the shares are sold short.
What does this mean for investors? A high degree of perplexity surrounds this increasing trend – is it an indicator that investors believe the stock will fall or is it simply hedge funds balancing their portfolios? A high degree of bustiness indicates that there is some level of concern surrounding Cipher Mining’s future profitability.
Cipher Mining’s recent quarterly earnings reports did not fare well with analysts – the firm reported ($0.21) EPS for the quarter, missing analysts’ consensus estimates by ($0.14). The firm had revenue of $3.04 million during the quarter compared to the consensus estimate of $4.60 million.
Despite these setbacks, a number of analysts have issued positive reports on Cipher Mining shares recently. Cantor Fitzgerald initiated coverage on Cipher Mining with a buy rating and set a price target at $3 per share on March 13th.Research firm Needham & Company LLC also reiterated its buy rating and upgraded its price target from $2.70 to $4 per share.
Cipher Mining currently trades at around $2 per share on NASDAQ (NASDAQ:CIFR). With a market capitalization of $561.90 million and a price-to-earnings ratio of -13.75, investors may be sceptical about whether investing in fully-paid-for cryptocurrency mining hardware can remain profitable in a market with declining crypto prices.
Only time will tell how this short interest trend will unfold for Cipher Mining, but it’s important for investors to pay attention to the stock’s ups and downs in order to make informed decisions.
Institutional Investors Rally Behind Cipher Mining, Boosting Growth Prospects
Cipher Mining: Institutional Investors’ Game-Plan Unfolded
Cipher Mining, an emerging US-based Bitcoin mining company, has recently received a boost from institutional investors who have made significant changes to their positions in the stock. Vanguard Group Inc., State Street Corp, Renaissance Technologies LLC, Van ECK Associates Corp, and Vident Investment Advisory LLC have all raised their stakes in the cryptocurrency firm.
Vanguard Group Inc. tops the list with a 32.3% increase in its holdings in Cipher Mining during the third quarter. The company now holds over three million shares of Cipher Mining’s stock worth $3.8 million after purchasing an extra 736,781 shares during the last quarter. State Street Corp comes a close second with a 19.6% stake increment during the same period, acquiring an additional 118,287 shares worth $908,000.
Renaissance Technologies LLC takes the cake for the most significant percentage lift of all these institutions by elevating its holdings in Cipher Mining by nearly 1,738.2% in Q4 2020 alone! Cipher Mining is obviously on the radar far beyond retail traders and crypto enthusiasts!
Van ECK Associates Corp is no slouch either but holds just over half a million Cipher Shares worth around $700k following a 30.5% stake increase throughout Q3 last year.
Finally,Vident Investment Advisory LLC shows impressive growth figures by elevating its holdings by over 2,630%, resulting in owning some 392k Cipher Mining shares worth close to one and half million dollars.
Currently established as a subsidiary brand of Bitfury USA Inc., one of America’s leading providers of blockchain-related hardware and software infrastructure since its inception back in December of last year , Cipher Mining seems poised to make waves as their major shareholders jump onboard with conviction,
The chinks are between rocks will this cause more companies to follow suit? It remains cryptic how other investors would analyze these changes, but one thing is explicit: institutional investors are showing increasing confidence in Cipher Mining’s growth prospects.
Overall, it is primordial to note that, according to research by analytics platform Chepicap’s Brian Quarmby last year, the value of institutional investments in the crypto market (such as Bitcoin and Ether) had increased by a massive 13%, which equals over US$50 billion! With Cipher Mining now under the scrutiny and support of some of America’s biggest institutions, it may very well be that this fledgling cryptocurrency firm will help fuel this trend even more.