Cipher Mining Shares Plunge 5.67% to 2025 Low on Earnings Woes, Insider Selling

Cipher Mining (CIFR) shares plunged 5.67% on Thursday, marking their lowest level since October 2025, with an intraday drop of 6.56%. The sharp decline comes amid a mix of analyst activity, insider selling, and earnings pressures, despite a "Moderate Buy" consensus rating from analysts.

Analyst activity has been a double-edged sword for CIFR. Recent upgrades from firms like Needham & Company and Canaccord Genuity raised price targets to $15–$16, while others maintained cautious "Hold" or "Sell" ratings. However, the stock’s current price of $16.97 exceeds the average price target of $15.23, suggesting potential overvaluation or speculative trading. Institutional investors have shown mixed signals, with JPMorgan and Goldman Sachs increasing stakes but overall ownership remaining at 12.26%, reflecting limited consensus.

Insider and major shareholder selling has intensified concerns. A key stakeholder offloaded 3.5 million shares in late September, and insiders sold 19.3 million shares in the last 90 days, signaling potential internal skepticism about short-term prospects. Meanwhile, Cipher Mining’s Q2 2023 earnings highlighted operational struggles, including a $0.12-per-share loss and revenue below estimates, despite a projected 74.63% year-over-year revenue growth. Negative ROE (-21.71%) and net margin (-96.95%) underscore ongoing profitability challenges.

Market dynamics further complicate the outlook. While CIFR outperformed broader indices on the day, its 80.44% one-month surge contrasts with a bearish Bitcoin market and regulatory uncertainties. Analysts project continued losses in 2023, with full-year EPS expected at -$0.36. Institutional purchases, including a 996.9% stake increase by JPMorgan, hint at long-term confidence in Bitcoin mining’s potential, though mixed ratings and downward earnings revisions highlight near-term risks.