Insider Trading June 4, 2026 05:22 PM

Bitfury Affiliates Liquidate $47.9M in Cipher Digital Shares Amid Valuation Concerns

Insider selling activity coincides with analyst upgrades and recent earnings miss, highlighting mixed signals for the crypto mining stock.

By Derek Hwang CIFR

Entities linked to Bitfury, including V3 Holding Ltd and Bitfury Top HoldCo B.V., have executed significant sales of Cipher Digital Inc. (NASDAQ:CIFR) shares, totaling approximately $47.9 million. The transactions, reported via SEC Form 4 filings, occurred on June 3, 2026, with shares sold across various price points. This activity comes as CIFR trades near its 52-week high of $28.62, despite a recent earnings miss and analyst concerns regarding its valuation. The insider sales raise questions about the company's valuation and future performance, especially given the recent positive analyst coverage and progress in data center lease revenues.

Bitfury Affiliates Liquidate $47.9M in Cipher Digital Shares Amid Valuation Concerns
CIFR

Key Points

  • Entities affiliated with Bitfury sold $47.9 million in Cipher Digital shares, raising questions about insider confidence and valuation.
  • The stock trades near its 52-week high despite a recent earnings miss, with analysts maintaining positive outlooks due to data center lease revenues.
  • A variable prepaid forward sale contract was established, covering up to 2 million shares, with maturity dates extending into 2027.
  • The crypto mining sector faces valuation concerns, as indicated by InvestingPro's Most Overvalued list, which may impact investor sentiment and stock performance.

Entities affiliated with the Bitfury ecosystem, including Bitfury Top HoldCo B.V. and V3 Holding Ltd, have reported the sale of approximately $47.9 million in Cipher Digital Inc. (NASDAQ:CIFR) common stock. According to a recent SEC Form 4 filing, these transactions took place on June 3, 2026. The sales activity emerges as CIFR trades near its 52-week high of $28.62, a level reached after a remarkable 602% surge over the past year. However, InvestingPro analysis indicates that the stock may be overvalued relative to its Fair Value, placing it on the platform's Most Overvalued list. This valuation concern stands in contrast to the stock's recent price performance.


The reporting parties disposed of a total of 1,790,000 shares of common stock through multiple transactions. The sale prices ranged from $26.28 to $28.1 per share. Specifically, 1,146,445 shares were sold at a weighted average price of $26.2779, with individual sale prices between $25.8199 and $26.8196. An additional 624,715 shares were sold at a weighted average price of $27.1708, with prices ranging from $26.82 to $27.816. The remaining 28,840 shares were sold at a weighted average price of $28.09, with prices between $27.8226 and $28.2501. Following these transactions, the reporting persons collectively hold 59,516,694 shares of common stock.


The reporting persons involved in these filings include Vavilovs Valerijs, V3 Holding Ltd, Bitfury Group Ltd, Bitfury Top HoldCo B.V., and Bitfury Holding B.V., all identified as ten percent owners of Cipher Digital Inc. Valerijs Vavilovs is the sole owner of V3 Holding Ltd, which is the majority owner of Bitfury Group Limited. Bitfury Group Limited, in turn, is the sole owner of Bitfury Top HoldCo B.V., which is the sole owner of Bitfury Holding B.V. Due to these relationships, Mr. Vavilovs and the associated entities are deemed to share beneficial ownership of the reported shares.


Separately, on June 2, 2026, Bitfury Top HoldCo B.V. entered into a variable prepaid forward sale contract with an unaffiliated third-party dealer. This contract covers a maximum of 2,000,000 shares of Cipher Digital common stock. In connection with entering into this agreement, Bitfury Top HoldCo B.V. received a cash payment of $41.9 million. The contract obligates Bitfury Top HoldCo B.V. to deliver up to 500,000 shares of common stock in each of four tranches, with maturity dates scheduled for May 14, 2027, May 21, 2027, May 28, 2027, and June 4, 2027. The exact number of shares to be delivered at each maturity date will be determined by the daily volume-weighted average price of Cipher Digital common stock relative to a floor price of $24.8655 and a cap price of $37.2982. Bitfury Top HoldCo B.V. has pledged 2,000,000 shares to secure its obligations under this forward contract, while retaining economic and voting rights over these pledged shares unless a default occurs.


The filing also noted an amendment to a prior Form 4 filed on May 18, 2026, revising certain dollar figures in footnote 6 of that earlier filing.


In other recent news, Cipher Mining reported its first quarter of 2026 earnings, revealing a dip in revenue and earnings per share (EPS). The company posted an EPS of -$0.28, falling short of the expected -$0.23, and recorded revenue of $34.84 million, which missed the anticipated $35.71 million. Despite these challenges, Cipher Mining's stock saw an increase in pre-market trading, indicating investor confidence. Additionally, H.C. Wainwright raised its price target for the company to $30 from $25, maintaining a Buy rating due to progress in data center lease revenues expected to commence in the fourth quarter of 2026. Furthermore, Bernstein and Jefferies both initiated coverage on Cipher Mining with an Outperform and Buy rating, respectively, each setting a price target of $32. Bernstein highlighted the company's strong order books and multi-gigawatt power development pipelines, while Jefferies noted Cipher Mining's strategic leases with hyperscalers. These developments reflect a positive outlook from analysts despite the recent earnings miss.


This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.


Is CIFR a bargain right now? The fastest way to find out is with our Fair Value calculator. We use a mix of 17 proven industry valuation models for maximum accuracy. Get the bottom line for CIFR plus thousands of other stocks and find your next hidden gem with massive upside.


See Undervalued Stocks

Risks

  • The stock's valuation is considered overvalued relative to its Fair Value, which could lead to a correction if market conditions change.
  • The variable prepaid forward sale contract introduces uncertainty regarding the number of shares to be delivered, dependent on future stock prices.
  • Recent earnings miss and declining revenue may signal underlying operational challenges, potentially affecting investor confidence and stock performance.

More from Insider Trading

Insider Activity: Control Empresarial de Capitales Liquidates $10.9M PBF Energy Stake Jun 4, 2026 Airbnb CFO Executes Pre-Arranged Sale of $1.01M in Shares Amid Market Valuation Debate Jun 4, 2026 TWFG Director Michael Doak Accumulates $638K in Shares Amid Stock Decline Jun 4, 2026 FormFactor Director Sheri Rhodes Offloads $793K in Equity Amid Strong Quarterly Performance Jun 4, 2026 Zoom CEO Eric Yuan Executes $2.64 Million Share Sales Under Pre-Arranged Trading Plan Jun 4, 2026