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Cipher Mining Stock Gains 14% as AI Data Center Optionality Draws Attention
Cipher Mining (CIFR) saw a significant increase of nearly 14% as investor interest shifted towards Bitcoin miners that are leveraging high-performance computing and AI infrastructure. This surge followed new analyst reports highlighting the potential for selected Bitcoin miners to repurpose their power capacities and data center infrastructure for AI workloads. Cipher is among the companies that offer opportunities beyond traditional Bitcoin mining.
The rally comes ahead of Cipher's upcoming earnings report for the fourth quarter and the full year 2025, scheduled for February 24. Investors appear to be positioning themselves in anticipation of the report, especially as Bitcoin prices remain stable and sentiment in the sector improves.
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“The strong increase suggests that investors are increasingly focusing on Cipher's strategic positioning rather than short-term earnings volatility.”
As of February 9, the CIFR stock price was $16.77, with a 52-week high of $25.52 and a target price of $28.23. The company's revenue growth profile remains robust, with LTM revenue rising from $151 million last year to $206 million, while gross margins increased to 34%, reflecting improved operational efficiency.
However, profitability remains under pressure, with an LTM EBITDA margin of -47.7% and negative free cash flow due to high capital expenditures for capacity expansion. The market's expectations remain optimistic yet cautious, with the average street target at $28, indicating a potential upside of about 68% from current levels.
In summary, Cipher Mining's stock has gained attention due to its strategic positioning in the AI sector, with strong revenue growth but ongoing profitability challenges.
Marathon vs. Riot Stock: Risky Leverage Against Solid AI Fortress
The Bitcoin market in February 2026 resembles a battlefield, with Bitcoin prices significantly below the industry's average production costs of around $87,000. Experts are already discussing the feared "miner capitulation." In this brutal environment, a fascinating divergence is emerging between the two industry giants: Marathon Digital Holdings (MARA) and Riot Platforms (RIOT).
Marathon Digital is sticking to its strategy as a leveraged bet on Bitcoin prices, recently having to move massive amounts of stock to remain liquid. In contrast, Riot Platforms is successfully shifting its focus towards high-performance computing (HPC), highlighted by a groundbreaking deal with chip giant AMD. Investors are now considering not just hashrate but also survival, diversification, and which company has the better business model for the crypto winter.
“The market is now valuing stability and infrastructure higher than pure leverage.”
Marathon Digital has recently transferred approximately 1,318 BTC (worth about $86.9 million) to various counterparties, raising concerns about its liquidity position. The stock has come under significant selling pressure, trading below critical support levels. Meanwhile, Riot Platforms has announced a significant update, including a data center lease agreement with AMD, which diversifies its revenue sources away from volatile Bitcoin prices.
In conclusion, the contrasting strategies of Marathon and Riot highlight the ongoing challenges and opportunities within the Bitcoin mining sector, with Riot appearing better positioned for the current market conditions.
IREN Stock: Constant Outlook Amid Market Volatility
IREN (IRIS Energy) continues to grapple with its valuation in the market. After a strong previous day, the stock faced pressure, dropping around 7% as investors reassess the risks and opportunities of its rapid shift from Bitcoin mining to AI and high-performance computing infrastructure.
A key component of IREN's strategy is its partnership with Microsoft, which has resulted in a contract valued at up to $9.7 billion, alongside $3.6 billion in GPU-specific financing commitments. The company is also advancing its power capacity with a new 1.6 GW data center campus project in Oklahoma, aiming for an annual recurring revenue (ARR) of $3.4 billion by the end of 2026.
“The market's hesitation reflects concerns over the capital-intensive path to achieving these goals and the influence of crypto volatility.”
Despite the challenges, IREN reported a sequential revenue increase of approximately 137% in its AI Cloud segment, indicating that infrastructure development is translating into revenue. However, the market remains cautious about the feasibility of scaling its combined mining and AI infrastructure business at the current pace.
In summary, IREN's stock reflects ongoing market volatility as it navigates a significant transition, with strong partnerships and ambitious revenue targets but also substantial risks associated with its capital-intensive strategy.
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