Why Is Cipher Digital Stock Surging On Monday?

Cipher Digital Inc.’s (NASDAQ: CIFR ) stock price is gaining traction on Monday as investors execute a buy-the-dip strategy following a heavy multi-day sell-off.

Along with other artificial intelligence (AI) infrastructure peers, Cipher Digital experienced a sharp double-digit selloff late last week.

On Monday, traders began rotating capital back into these momentum-driven data center stocks.

The Nasdaq is up 1.37% while the S&P 500 has gained 0.48%.

This rotation follows comments by Futurum Group CEO Daniel Newman on July 1, via X, regarding market movements in the sector.

Pushing back against investors who previously sold shares of Nebius Group NV and Cipher Digital, Newman stated, Meta Platforms Inc is “setting itself up to offer compute services, which is not an indicator of abundance.” Newman added: “It’s a smart business move that allows it to invest ferociously while mitigating risk and offsetting expense as it increases consumption and monetization.” Read Also: Inflation Turns Negative as Hormuz Reopens: Why Gold, Silver, Bitcoin May Now Rally The Infrastructure Pivot Wall Street’s sentiment remains focused on Cipher’s ongoing macro transformation from a pure-play Bitcoin (CRYPTO: BTC) miner into an AI and High-Performance Computing (HPC) data center landlord.

The company recently closed an $810 million secured debt capital raise for its Stingray Facility, which is fully pre-leased under a long-term contract to Amazon.com, Inc. ’s Amazon Web Services.

Short Interest Metrics Short interest in Cipher Digital increased during the last reporting period, rising from 52.53 million to 54.50 million.

This put 16.26% of the company’s publicly available shares short.

Based on the recent average daily trading volume of 24.86 million shares, it would take 2.19 days for holders of this short interest to close out their positions.

What’s Next Cipher Digital is scheduled to report second-quarter earnings on Aug.

6.

Analysts estimate an earnings loss of 11 cents per share and quarterly revenue of $31.9 million.

Cipher Digital has missed EPS estimates in two consecutive quarters.

Price Action: Cipher Digital shares were up 10.35% at $22.11 at the time of publication on Monday, according to Pro data.

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