Cipher Mining 17252MAP5 Bond
| CIFR Stock | USD 6.45 0.82 14.56% |
Cipher Mining holds a debt-to-equity ratio of 0.019. At this time, Cipher Mining's Short and Long Term Debt Total is relatively stable compared to the past year. As of 11/29/2024, Interest Debt Per Share is likely to grow to 0.03, while Net Debt is likely to drop (67.3 M). . Cipher Mining's financial risk is the risk to Cipher Mining stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Cipher Mining's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Cipher Mining's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Cipher Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Cipher Mining's stakeholders.
For most companies, including Cipher Mining, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Cipher Mining, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Cipher Mining's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 3.3384 | Book Value 1.932 | Operating Margin (1.87) | Profit Margin (0.34) | Return On Assets (0.05) |
Cipher |
Given the importance of Cipher Mining's capital structure, the first step in the capital decision process is for the management of Cipher Mining to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Cipher Mining to issue bonds at a reasonable cost.
| Popular Name | Cipher Mining CTAS 345 01 MAY 25 |
| Specialization | Financial Services |
| Equity ISIN Code | US17253J1060 |
| Bond Issue ISIN Code | US17252MAP59 |
| S&P Rating | Others |
| Maturity Date | Others |
| Issuance Date | Others |
Cipher Mining Outstanding Bond Obligations
| MPLX LP 52 | US55336VAL45 | Details | |
| Morgan Stanley 3591 | US61744YAK47 | Details | |
| CINTAS P NO | US17252MAG50 | Details | |
| CINTAS P NO | US17252MAN02 | Details | |
| CTAS 4 01 MAY 32 | US17252MAQ33 | Details | |
| CTAS 345 01 MAY 25 | US17252MAP59 | Details |
Understaning Cipher Mining Use of Financial Leverage
Cipher Mining's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Cipher Mining's current equity. If creditors own a majority of Cipher Mining's assets, the company is considered highly leveraged. Understanding the composition and structure of Cipher Mining's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
| Last Reported | Projected for Next Year | ||
| Net Debt | -64.1 M | -67.3 M | |
| Long Term Debt | 110.8 K | 98.5 K | |
| Long Term Debt Total | 110.8 K | 98.5 K | |
| Short and Long Term Debt Total | 22 M | 23.3 M | |
| Short Term Debt | 9.1 M | 7.2 M | |
| Net Debt To EBITDA | (1.62) | (1.53) | |
| Debt To Equity | 0.01 | 0.01 | |
| Interest Debt Per Share | 0.03 | 0.03 | |
| Debt To Assets | 0.01 | 0.01 | |
| Total Debt To Capitalization | 0.01 | 0.01 | |
| Debt Equity Ratio | 0.01 | 0.01 | |
| Debt Ratio | 0.01 | 0.01 | |
| Cash Flow To Debt Ratio | (18.56) | (19.49) |
Pair Trading with Cipher Mining
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cipher Mining position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cipher Mining will appreciate offsetting losses from the drop in the long position's value.Moving together with Cipher Stock
Moving against Cipher Stock
| 0.62 | RC | Ready Capital Corp | PairCorr |
| 0.57 | BRACU | Broad Capital Acquisition | PairCorr |
| 0.46 | EARN | Ellington Residential | PairCorr |
| 0.39 | EMCGR | Embrace Change Acqui | PairCorr |
| 0.37 | PFTAW | Portage Fintech Acqu | PairCorr |
The ability to find closely correlated positions to Cipher Mining could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cipher Mining when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cipher Mining - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cipher Mining to buy it.
The correlation of Cipher Mining is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cipher Mining moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cipher Mining moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cipher Mining can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Cipher Stock Analysis
When running Cipher Mining's price analysis, check to measure Cipher Mining's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cipher Mining is operating at the current time. Most of Cipher Mining's value examination focuses on studying past and present price action to predict the probability of Cipher Mining's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cipher Mining's price. Additionally, you may evaluate how the addition of Cipher Mining to your portfolios can decrease your overall portfolio volatility.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.