We feel now is a pretty good time to analyse Cipher Mining Inc.'s (NASDAQ:CIFR) business as it appears the company may be on the cusp of a considerable accomplishment. Cipher Mining Inc., a technology company, develops and operates industrial scale bitcoin mining data centers in the United States. The company’s loss has recently broadened since it announced a US$39m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$89m, moving it further away from breakeven. As path to profitability is the topic on Cipher Mining's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Cipher Mining

Cipher Mining is bordering on breakeven, according to the 7 American Software analysts. They expect the company to post a final loss in 2024, before turning a profit of US$120m in 2025. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 86% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Cipher Mining's growth isn’t the focus of this broad overview, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Cipher Mining has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Cipher Mining to cover in one brief article, but the key fundamentals for the company can all be found in one place – Cipher Mining's company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Valuation: What is Cipher Mining worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Cipher Mining is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Cipher Mining’s board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.