Cipher Digital Inc. climbed alongside a broad recovery in AI infrastructure names Tuesday, with an added tailwind from Treasury Secretary Scott Bessent's declaration that the CLARITY Act — a long-awaited crypto market structure bill — sits at the "one-yard line" in the Senate.
Cipher Digital Inc. climbed alongside a broad recovery in AI infrastructure names Tuesday, with an added tailwind from Treasury Secretary Scott Bessent's declaration that the CLARITY Act — a long-awaited crypto market structure bill — sits at the "one-yard line" in the Senate.
Cipher Digital Inc. (NASDAQ: CIFR) shares rose 11.2% to $22.84, extending a rebound from Friday's three-month low of $16.13. The stock had fallen for five consecutive sessions before Monday's 17% surge, which investors used as a bargain-hunting entry ahead of the company's second-quarter earnings, expected in the second week of August.
"The CLARITY Act has been the single most important piece of legislation for institutional crypto adoption, and Bessent's language suggests passage is imminent," said a Washington-based policy analyst tracking the bill. The legislation promises to establish a coherent market structure framework that the digital asset industry has argued is necessary for institutional capital to enter the space at scale.
Bitcoin climbed toward $67,000 in afternoon trading, while Coinbase Global Inc. shares surged more than 11%. Broader social media chatter suggested the White House had reached an agreement on an ethics package attached to the bill, with updated text potentially released in short order.
Cipher's Dual Identity: AI Infrastructure and Bitcoin Exposure
Cipher Digital has pivoted away from its Bitcoin mining origins to redirect power assets and data center capabilities toward artificial intelligence compute demand. The stock is catching a bid alongside other former miners that have made similar transitions — a group that had faced a prolonged stretch of selling pressure before this week's reversal.
The company still mines Bitcoin and held $76,150 worth of the digital currency on its balance sheet as of March 31, down from $125,400 at year-end 2025. With Bitcoin pushing toward multi-month highs, that residual exposure provides a modest additional boost on top of the broader AI infrastructure recovery.
Hedge Fund Interest Grows, Conviction Wanes
Insider Monkey data shows 49 hedge funds held positions in Cipher Digital as of the first quarter, up from 43 in the prior quarter. However, combined positions totaled $745 million, a decline of 12.7% from $853 million in the fourth quarter of 2025 — suggesting new entrants took smaller stakes.
The stock carries a strong buy recommendation from 15 analysts. Bernstein reaffirmed a $32 price target, implying 55.8% upside from Tuesday's close, while Rosenblatt set a $30 target, representing a 46% potential gain.
CEO Tyler Page sold $4.9 million worth of shares in separate transactions on July 8 and 9, according to an SEC filing. The sales were conducted under a Rule 10b5-1 trading plan adopted Dec. 19, 2025.
The Nasdaq Composite rose nearly 2% Tuesday as investors looked past geopolitical concerns and rotated back into beaten-down technology names. High-beta momentum stocks had suffered a 33% drawdown in recent sessions — one of the worst since the late 1990s — before staging this week's recovery.
This article is for informational purposes only and does not constitute investment advice.
