10 Best Debt-Free Penny Stocks to Buy Now

6. Cipher Mining Inc. (NASDAQ:CIFR)

Market Cap as of September 13: $1.04 Billion

Enterprise Value: $940.10 Million

Hedge Funds Holding Stakes as of Q2 2024: 15

Cipher Mining Inc. (NASDAQ:CIFR) is a financial services company that develops and operates industrial-scale bitcoin mining data centers in the U.S. Consequently, it is one of the best debt-free penny stocks to buy now to gain exposure in the burgeoning cryptocurrency space.

Its competitive edge stems from being an energy-cost-efficient company in the Bitcoin mining sector. Additionally, it is one of the most financially stable companies in the cryptocurrency space with a low debt level of about $23 million as of June 2024.

Concentrating on getting power contracts at fixed prices that are unusually low, around $0.027 per kilowatt hour has made it one of the most affordable operations in the sector. This economical approach significantly boosts Cipher’s profit margins, enabling it to stay profitable even when the market is unstable.

In August, Cipher Mining Inc. (NASDAQ:CIFR) mined 151 Bitcoin, marking a drop from the 169 Bitcoin it mined in July, mainly because of its involvement in demand-response initiatives and a rise in the complexity of the network. However, Cipher Mining’s operational hash rate rose from 8.7 EH/s in July to 9.1 EH/s in August, mainly because of the introduction of new S21 and S21 Pro Bitmain mining machines.

The company has been expanding its operations as it looks to take advantage of the skyrocketing Bitcoin price. It has already completed the acquisition of a new 300MW development site in Texas. The acquisition is poised to increase its portfolio to over 2.5 GW across 10 sites.

Cipher Mining Inc. (NASDAQ:CIFR)’s long-term plan involves major growth in operations and the initiation of a powerful computing infrastructure company. These recent developments highlight Cipher Mining’s dedication to expanding its operations and improving efficiency within the sector.

Cipher Mining Inc. (NASDAQ:CIFR)’s valuation also looks attractive at current levels as it trades at a forward price-to-earnings ratio of 4.43x, a significant discount to its peers. 15 hedge funds held the stock at the close of Q2 2024.