Crypto Miner Cipher Receives Takeover Interest, Shares Soar 18%

Cipher Mining Inc. is considering a potential sale following takeover interest due to the high demand for data centers. With a market value of about $2.2 billion, the US-based company is working with advisers to evaluate potential buyers. On Wednesday, Cipher’s shares rose by 18%, highlighting market excitement, according to Bloomberg.

The artificial intelligence boom has created a shortage of data-center space. Consequently, AI firms are targeting crypto-mining companies, which already have the required infrastructure. This trend has led to significant moves in the industry. Last month, cloud computing provider CoreWeave Inc. offered to acquire Bitcoin miner Core Scientific Inc. for approximately $1 billion. Additionally, Northern Data AG, a crypto miner-turned high-performance computing provider, is considering a US listing with a potential valuation of up to $16 billion.

Cipher, which went public in 2021 through a merger with Good Works Acquisition Corp., is still in the early stages of deliberation. There is no certainty that Cipher will decide to pursue a sale. However, this development underscores the growing intersection between the cryptocurrency and AI sectors, driven by the increasing need for advanced computing resources.