Cipher Mining’s stock jumped more than 33% on Monday after the company announced a $5.5 billion, 15-year lease agreement with Amazon Web Services (AWS) to provide infrastructure for artificial intelligence (AI) workloads. The move marks a major step in the bitcoin miner’s pivot toward high-performance computing (HPC) and AI infrastructure.
Under the new deal, Cipher will supply 300 megawatts (MW) of capacity to AWS starting in 2026, using both air- and liquid-cooled systems. The rollout will take place in two phases, beginning in July and completing by the end of that year. Rent payments are set to begin in August 2026.
Cipher Mining Inc.Expanding in Texas with a 1-Gigawatt AI Hub
Cipher also revealed plans to develop a massive 1-gigawatt (GW) data center in West Texas through a new joint venture. The project, called Colchis, will give Cipher a 95% equity stake based on standard lease and development terms under a future HPC lease.
The site spans 620 acres and will connect directly to the power grid through dual interconnections built by American Electric Power. These connections are expected to be energized in 2028, pending final approval from the Electric Reliability Council of Texas (ERCOT). The location, adjacent to an existing substation, is designed specifically for high-performance data center use.
AI Expansion and Financial Results
The AWS agreement follows Cipher’s earlier 10-year, 168 MW hosting deal with Fluidstack, backed by a $1.4 billion guarantee from Google. That deal gave Google a 5.4% equity stake in Cipher and positioned the company as a credible player in AI infrastructure.
“The third quarter was truly transformative for Cipher,” said CEO Tyler Page. “We executed a pivotal transaction with Fluidstack and Google, and we’re now building on that momentum with our first direct lease with a Tier 1 hyperscaler.”
Cipher reported a net loss of $3 million, or $0.01 per share, for the third quarter, but posted adjusted earnings of $41 million, or $0.10 per diluted share. The company said its AI hosting contracts now total roughly $8.5 billion in lease payments. Cipher also completed a $1.3 billion convertible note offering during the quarter.
Following the announcements, Cipher’s stock traded around $24.81, marking a year-to-date gain of more than 400%.
A Broader Trend Among Bitcoin Miners
Cipher’s shift reflects a growing trend among bitcoin miners diversifying into AI infrastructure as demand for computing power surges. While mining-specific chips aren’t suited for AI, these companies already control critical power contracts and physical facilities that can be repurposed for GPU hosting.
Other miners are seeing similar momentum. Earlier Monday, IREN signed a five-year, $9.7 billion AI cloud deal with Microsoft, granting the tech giant access to its Nvidia GB300 GPUs. IREN’s shares also spiked nearly 30% in pre-market trading.
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With tech giants racing to secure computing capacity for AI workloads, Cipher Mining’s deals with AWS and Google signal a strong foothold in one of the industry’s fastest-growing sectors. As the company scales its Texas operations and deepens its HPC partnerships, it’s positioning itself not just as a crypto miner—but as a key infrastructure provider for the AI era.
