Cipher Mining, one of the largest publicly traded bitcoin miners in the U.S., has announced a landmark $3 billion agreement to expand into high-performance computing (HPC) services, underscoring its growing ambitions beyond crypto mining.
The Texas-based company revealed Thursday that it signed a 10-year colocation deal with Fluidstack, an AI-focused cloud infrastructure provider. Under the agreement, Cipher will supply 168 megawatts (MW) of critical IT load from its Barber Lake development in Colorado City, supported by a total gross capacity of 244 MW. The contract’s initial value is estimated at $3 billion, with options to extend for two additional five-year terms, potentially raising the total to around $7 billion.
In a major show of confidence, Google has agreed to backstop $1.4 billion of Fluidstack’s lease obligations. In exchange, the tech giant will receive warrants to acquire roughly 24 million shares of Cipher, representing about 5.4% of the miner’s pro forma equity. Cipher emphasized that it will retain full ownership of the Barber Lake project.
Cipher Mining Inc.“We are thrilled to be working with Fluidstack to develop HPC data centers, and we look forward to welcoming Google as an investor in Cipher,” said CEO Tyler Page. “This transformative transaction reinforces our HPC momentum as we continue to scale our capabilities and strengthen our position in this rapidly growing sector.”
Alongside the hosting deal, Cipher also unveiled plans for a private offering of $800 million in convertible senior notes due in 2031. The notes, which carry no interest, may be converted into shares, cash, or a combination depending on certain conditions. Purchasers will also have a short-term option to buy up to an additional $120 million in notes. Proceeds will be used to fund the Barber Lake buildout, advance Cipher’s broader 2.4 gigawatt HPC pipeline, and support development at other sites.
Cipher Mining Inc.Investor reaction was swift. Cipher’s shares surged more than 22% in pre-market trading on Thursday before retreating slightly. As of the latest update, CIFR stock was trading at $14.95, giving the company a market capitalization of $5.6 billion. Year to date, shares have climbed more than 190%.
Cipher’s move marks a significant pivot toward the fast-growing AI and cloud computing sectors, positioning the firm to diversify its revenue streams while maintaining its bitcoin mining core. With Google’s backing and billions in new commitments, Cipher is signaling that the convergence of crypto infrastructure and AI computing could be one of the industry’s next major growth frontiers.
