Cipher Mining Stock Is Rallying Today: What's Going On?

Cipher Mining Inc (NASDAQ:CIFR) shares are gaining on Thursday. Here’s a look at what may be fueling the momentum.

Cipher Mining shares are powering higher. Why are CIFR shares rallying?

What To Know: Cipher could be be benefiting from the massive data center deal announced by Hut 8 Corp (NASDAQ:HUT) on Wednesday.

Hut 8, another former Bitcoin miner now focused on AI infrastructure, unveiled a landmark 15‑year, $7.0 billion lease agreement with Fluidstack for 245 megawatts of IT capacity at its River Bend campus in Louisiana.

Enthusiasm around Hut 8's transaction seems to be lifting sentiment across the group, as investors warm to the idea of former miners reinventing themselves as data center operators.

Cipher recently signed a $5.5 billion data center deal with Amazon Web Services and a hosting agreement with Fluidstack.

For companies shifting from Bitcoin mining to AI data centers, the Hut 8 transaction may act as strong proof that the pivot works.

Bitcoin's (CRYPTO: BTC) volatility may also be playing a role in Cipher’s recent moves. Bitcoin jumped 2.7% to nearly $89,000 following the softer‑than‑expected CPI report, before pulling back later in the session. U.S. inflation came in softer-than-expected, which is lifting broader markets. U.S. consumer prices rose 2.7% year‑over‑year in November, well below economist expectations of 3.1%.

CIFR Price Action: Cipher shares were up 5.42% at $15.17 at the time of publication on Thursday, according to Benzinga Pro.

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