Small Crypto Stock Skyrockets 24% As SoftBank Deal Sparks Frenzy Over Secret $500 Billion AI Project

By Stocks News   |   1 week ago   |   Stock Market News
Small Crypto Stock Skyrockets 24% As SoftBank Deal Sparks Frenzy Over Secret $500 Billion AI Project

Cipher Mining woke up yesterday smelling blood, unleashing a massive 24% rally that no one expected. The reason? A $50 million investment from SoftBank, the tech world’s sugar daddy that never met a speculative venture it didn’t like. Naturally, retail investors have already gone full Charlie Day from It’s Always Sunny—connecting Cipher’s SoftBank cash to a supposedly imminent role in the $500 billion Stargate AI project. Spoiler: there’s no actual evidence, (as of yet).

Small Crypto Stock

(Source: Giphy) 

In short, Cipher got its bag through a PIPE deal (Private Investment in Public Equity). Now if you aren’t familiar with PIPE deals, they are basically glorified payday loans—fast, expensive, and slightly shady. But hey, $50 mil is $50 mil, amirite? Which is why CEO Tyler Page is already calling this a “pivotal moment”

Now of course, $50 million in extra cash is enough to get anyone interested—but most of the chaos revolves around the fact that maybe, just maybe, Cipher’s new bestie SoftBank is going to slide them into the Stargate AI project—a $500 billion initiative backed by Oracle, OpenAI, and SoftBank itself. ICYMI, the goal of this is to turn the U.S. into the AI superpower of the future. The reality? Cipher is still a Bitcoin miner that’s trying to moonwalk into high-performance computing like no one will notice it’s been mining crypto this whole time. However, if we’ve learned anything over the past few years is that retail loves underdog narratives, and nothing screams “diamond hands” like an unsubstantiated connection to a half-trillion-dollar tech project.

Small Crypto Stock

(Source: StockTwits) 

Meanwhile, Cipher’s actual business is still doing Bitcoin things. They mined 234 BTC in December, bringing their stash to 1,344 BTC, or about $140 million if you’re feeling optimistic about crypto prices. Their hashrate hit 13.5 EH/s, which probably means nothing to most people except that they’re still cranking out digital coins while trying to talk up their foray into AI-driven infrastructure. It’s like a kid trying to convince you their lemonade stand is actually a startup incubator.

On the other hand, like I mentioned earlier, PIPE deals like this don’t come without strings. SoftBank didn’t just hand over $50 million out of the kindness of its heart—instead they are betting Cipher will make something of itself in the HPC and AI space, which is a bold move considering Cipher’s biggest claim to fame is being semi-competent at Bitcoin mining. Plus, PIPE deals dilute existing shareholders, which according to us at Stock.News is no buéno. 

Small Crypto Stock

(Source: Giphy) 

But hey, when your stock is up 100% over the past twelve months—I guess it doesn’t really mean much to others. Especially when the stock just got a $50 million lifeline from the man who single handedly kept WeWork from collapsing sooner than it did. For now though, retail investors are treating it like the second coming of Nvidia and everyone else is just trying to figure out what the hell Stargate AI is supposed to be.

Meaning, if you’re feeling lucky, then Cipher Mining might be something worth your while. But even with that, place your bets accordingly and do your due diligence to see if this is even worth your time. In the meantime, stay safe and stay frosty, friends! Until next time…

Small Crypto Stock

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Stocks.News does not hold positions in companies mentioned in the article. 

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