It's a good day to be a crypto-linked stock, and Cipher Digital Inc. (CIFR) is making the most of it. Shares of the company were up 11.99% at $17.00 at the time of publication Thursday, according to market data. The surge comes as Bitcoin (CRYPTO: BTC) climbed to $80,000, supported by lower yields and a weaker dollar. The broader market was also feeling the love, with the Nasdaq up 1.07% and the S&P 500 gaining 0.96%. Market breadth was firmly positive, with all 10 sectors advancing.
What's driving the risk-on mood? Comments from Federal Reserve Gov. Christopher Waller may have added fuel to the fire. Waller said he's inclined to support keeping interest rates steady, according to reports. That's music to the ears of speculative assets like cryptocurrencies and crypto-linked stocks, as it eases concerns about tighter monetary policy.
Cipher Digital Expands Gas Pipeline Infrastructure
But it's not just the macro tailwinds doing the heavy lifting. Cipher Digital also announced Thursday that it has started developing lateral pipelines across multiple sites. These pipelines will connect the company's facilities to nearby natural gas supplies, potentially supporting up to 2.5 gigawatts of on-site power generation.
What's the plan with all that power? Cipher Digital intends to use the capacity to expand and lease industrial-scale data centers to major tenants, with a focus on high-performance computing workloads. The company will work with power providers to develop the required generation infrastructure, targeting power availability before the end of 2027.
This is a classic play in the AI and high-performance computing boom: secure the power, build the data centers, and lease them out. It's a long-term bet, but one that could pay off handsomely if the demand for compute continues to grow.
Technical Analysis
Now, let's get into the charts. CIFR remains in a repair phase on the longer-term chart. The stock trades 13.5% below its 50-day simple moving average (SMA) of $19.60, and it's also 18% below its 100-day SMA of $20.68 and 7.7% below its 200-day SMA of $18.36. So, there's still some work to do to reclaim those levels.
However, there's a glimmer of hope on the shorter-term front. CIFR trades 3.2% above its 20-day SMA of $16.42, suggesting that the latest rebound is starting to stabilize the short-term trend. The relative strength index (RSI) stands at 47.86, signaling neutral momentum—neither overbought nor oversold.
The moving-average structure is a bit of a mixed bag. The 20-day SMA is below the 50-day SMA, which points to a bearish intermediate trend. But the 50-day SMA remains above the 200-day SMA, which supports a more bullish longer-term setup. So, it's a tug-of-war between short-term bearishness and long-term optimism.
Looking at key levels, the June swing high—which also marked the 52-week high—remains an important upside level to watch. On the downside, the August swing low provides a key reference point.
- Key Resistance: $18. This round-number level sits near the 200-day SMA of $18.36 and could limit further gains.
- Key Support: $16. This level is close to the 20-day SMA of $16.42 and could provide near-term support.
So, where does that leave investors? The stock is bouncing, but it's not out of the woods yet. The short-term trend is stabilizing, but the intermediate trend is still bearish. Keep an eye on those key levels to gauge whether this rally has legs or if it's just a head fake.
