Cipher Moves High and Low This Week

Cipher Mining (NASDAQ: CIFR) started the week off with a drop but is ending the week with a pop. On Monday, the stock fell roughly 20%. But today, it's up roughly 8% on news that's it's getting some mining equipment -- useful for a company that wants to be mining.

Good Works Acquisition Corporation was a special purpose acquisition company (SPAC). Like all SPACs, it went public to raise money to buy another company; it had no business operations of its own.

Good Works decided to buy Cipher Mining in March, valuing Cipher Mining at an enterprise value of $2 billion, even though it was newly formed and, like Good Works, had no business operations at the time it went public.

Needless to say this was an unusual situation; most SPACs merge with a company that at least has an existing business. SPACs don't just get money from going public -- they also get money from private investors who, in return, get a piece of the company. Looking at insiders, some shares were subject to a two-year lock-up period, but other shares were only locked up for 180 days. Sept. 1 was 180 days from the date of the business combination.

On Sept. 24, Cipher Mining filed paperwork with the Securities and Exchange Commission (SEC) on behalf of insiders to sell up to around 42 million shares of Cipher Mining stock. And it appears that at least some insiders took advantage of this, selling their shares and leading to the stock's big drop earlier this week.

CIFR shares took on 34 cents to begin Friday at $6.41