Cipher Contemplates Takeover Bid

Cipher contemplates takeover bid; in 2021, Cipher conducted its initial public offering (IPO). Its current market capitalization exceeds $2 billion.

According to a recent Bloomberg article, Cipher, a Bitcoin mining company, is contemplating a sale following a takeover offer.

The report cited unnamed sources who stated that the company is presently deliberating and consulting with advisers to assess potential interest. However, management may decide not to sell the company.

The news caused shares of Cipher (CIFR) to surge to a high of $8.00, but they subsequently declined to $6.56. Nevertheless, this still represents a substantial increase from the stock’s high of $4.77 at the beginning of 2024.

The cipher upgrades operations

Cipher’s procurement of 37,000 T21 Antminers in December 2023 was valued at $99.5 million. In January 2024, the company acquired 16,700 Avalon A1466 miners to achieve a computational capacity of 8.4 exahashes per second (EH/s). This acquisition occurred shortly after that.

The rise of publicly traded mining companies

Donald Trump, the 2024 presidential candidate, recently met with executives from the mining industry, who have since mobilized politically. In anticipation of the 2024 presidential election, political advocacy has acquired widespread momentum within the industry.

As a result of political developments, the crypto industry has been the subject of increased scrutiny, which has resulted in improvements in mining equities in recent weeks. Former President Trump pledged to assist the mining sector, which resulted in a 10% increase in mining stocks.

Trump has stated that “all the remaining Bitcoin [should] be made in the USA,” indicating his intention to attract a greater concentration of the highly competitive industry to the United States and prevent anti-innovation regulators from driving miners to other jurisdictions.

The German government’s selling pressure ceased on July 15, and the odds of former President Trump winning the election on predictive markets were raised by tumultuous political developments in the United States. Consequently, Bitcoin mining stocks and Bitcoin experienced a surge.

Bitcoin miners in the United States increasingly retain their coins in anticipation of future profits, reflected in the increase in Bitcoin mining stocks. Marathon Digital did not sell any of the Bitcoin it mined in June despite mining being a capital-intensive business that traditionally necessitates periodic BTC sales to cover operational costs.