Aurelius Capital Management, based in New York City, has made a notable entry into the cryptocurrency sector by acquiring a 500,000-share position in Cipher Mining Inc. The purchase, valued at approximately $6.3 million, was disclosed in a filing with the Securities and Exchange Commission on November 13. This new stake accounts for 11.4% of the fund’s $55.2 million in reportable U.S. equity assets, underscoring Aurelius’s strategic pivot toward scalable investments within the rapidly evolving landscape of crypto infrastructure.
This investment in Cipher Mining signifies a broader trend as firms begin to treat cryptocurrency infrastructure similarly to energy and data center investments, focusing on scale, contracted revenue, and balance sheet robustness. As of Friday, shares of Cipher Mining are trading at $16.21, reflecting a robust 182% increase over the past year, notably outpacing the S&P 500’s 16.5% gain during the same timeframe.
Cipher Mining operates bitcoin mining facilities and offers technology services tailored to cryptocurrency mining, generating revenue primarily from the mining and sale of bitcoin. With a market capitalization of $6.4 billion and trailing twelve months (TTM) revenue of $206.5 million, the company has also faced challenges, reporting a net income loss of $70.5 million.
The latest filings reveal that the majority of Aurelius’s portfolio is concentrated in bitcoin miners and infrastructure operators, highlighting a clear sector thesis. The fund’s primary holdings include another bitcoin miner, Bitfarms, valued at $19 million and comprising 34.4% of assets under management (AUM). Cipher Mining’s newly acquired shares rank as the third-largest holding in the portfolio, reinforcing a high-conviction strategy focused on scalability and efficient power access.
Cipher Mining’s recent performance reinforces this investment sentiment. In the third quarter, the company reported strong revenue of $72 million and adjusted earnings of $41 million, showcasing a significant recovery compared to the financial losses experienced during previous crypto downturns. The firm is also diversifying its revenue streams with a strategic focus on long-term agreements, including $8.5 billion in AI hosting lease payments, highlighted by a 15-year contract with Amazon Web Services to deliver 300 megawatts of capacity starting in 2026. Furthermore, Cipher is establishing majority ownership in a planned 1-gigawatt site in West Texas, positioning itself advantageously within the growing intersection of crypto and artificial intelligence infrastructure.
Overall, Aurelius Capital Management’s investment in Cipher Mining indicates a deliberate approach toward harnessing the potential of cryptocurrency and its infrastructure, demonstrating a belief that such assets can sustain long-term capital allocation, even in the wake of recent market transformations. The move aligns with broader trends that emphasize the importance of operational efficiency and the ability to capitalize on institutional demand within the digital asset sector.
