Cipher Digital Inc. (NASDAQ:CIFR) stock is gaining traction on Monday, as investors execute a buy-the-dip strategy following a heavy multi-day sell-off.

The upward movement reflects a shift in institutional sentiment as the company expands its identity as an artificial intelligence (AI) infrastructure provider rather than a pure-play cryptocurrency miner. The stock has declined 37.60% over the past month.

Nasdaq futures are up 1.01% while S&P 500 futures have gained 0.48%. On Monday, traders began rotating capital back into these momentum-driven data center stocks.

Institutional Sentiment And Sector Comments

The rotation follows comments by Futurum Group CEO Daniel Newman on July 1, via X, regarding market movements in the sector.

Pushing back against investors who previously sold stock of Nebius Group and Cipher Digital, Newman stated, Meta Platforms Inc is "setting itself up to offer compute services, which is not an indicator of abundance."

Newman added: "It’s a smart business move that allows it to invest ferociously while mitigating risk and offsetting expense as it increases consumption and monetization."

Data Center Infrastructure Transformation

Wall Street’s sentiment remains focused on Cipher’s ongoing macro transformation from a pure-play Bitcoin (CRYPTO: BTC) miner into an AI and High-Performance Computing (HPC) data center landlord.

Bitcoin is trading at $64,646.63, up 0.55% over the past 24 hours. The company recently closed an $810 million secured debt capital raise for its Stingray Facility, which is fully pre-leased under a long-term contract to Amazon.com, Inc.’s Amazon Web Services.

Short Interest And Upcoming Earnings

Short interest in Cipher Digital declined slightly during the latest reporting period, falling from 54.50 million shares to 54 million shares. Short positions now account for approximately 16.11% of the company’s publicly available shares.

Based on the recent average daily trading volume of 24.10 million shares, it would take roughly 2.24 days for short sellers to cover their positions, assuming normal trading activity.

Cipher Digital is scheduled to report its second-quarter earnings on August 6. Analysts expect the company to post a loss of $0.11 per share on quarterly revenue of approximately $31.90 million.

CIFR Price Action: Cipher Digital shares were up 13.53% at $19.93 at the time of publication on Monday, according to Benzinga Pro data.

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