TLDR
- Cipher Mining secured a 10-year AI hosting deal with Fluidstack worth $3 billion, potentially expanding to $7 billion
- Google will backstop $1.4 billion of lease obligations and receive warrants for 5.4% equity stake in Cipher
- The agreement covers 168 MW of critical IT load at Cipher’s Texas facility, delivery expected by September 2026
- Deal marks Cipher’s strategic shift from cryptocurrency mining to AI infrastructure hosting
- Project costs estimated at $9-11 million per MW with expected profit margins of 80-85%
Cipher Mining has signed a major 10-year agreement with Fluidstack to provide AI hosting services worth $3 billion. The deal includes extension options that could bring the total contract value to $7 billion over 20 years.
Google will play a key role in the partnership by backstopping $1.4 billion of Fluidstack’s lease obligations. This financial guarantee helps secure project-related debt financing for the venture.
BREAKING: $2 TRILLION SEARCH GIANT GOOGLE TO BUY STAKE IN PUBLIC #BITCOIN MINER CIPHER MINING
BIG TECH BACKING BTC. THIS IS HUGE 🚀 pic.twitter.com/KalS59Z2M6
— The Bitcoin Historian (@pete_rizzo_) September 25, 2025
The search giant will also receive warrants to purchase approximately 24 million shares of Cipher Mining stock. These warrants represent about 5.4% pro forma equity ownership in the company.
Under the agreement, Cipher will deliver 168 MW of critical IT load at its Lake Barber site in Colorado City, Texas. The facility will be supported by a maximum of 244 MW of gross capacity.
Infrastructure Development Timeline
The critical IT load is scheduled for delivery by September 2026. Cipher plans to maintain 100% ownership of the project throughout development and operation.
The company will access capital markets as needed to fund portions of the project. Estimated costs range from $9 million to $11 million per MW of critical IT load.
Cipher expects the site to generate Net Operating Income margins between 80% and 85%. These margins exceed typical data center economics, which usually range from 40% to 60%.
The Lake Barber site spans 587 acres with potential for expansion up to 500 MW capacity. This expansion capability provides room for future growth beyond the initial agreement.
Strategic Pivot from Crypto to AI
This deal represents a shift for Cipher Mining away from cryptocurrency operations toward AI infrastructure. The company traditionally focused on bitcoin mining before moving into high-performance computing.
Cipher maintains a separate 2.4 GW pipeline for additional HPC development opportunities. This pipeline remains available for future projects beyond the Fluidstack agreement.
The partnership provides Cipher with stable, long-term contracted revenue. This contrasts with the volatile income streams typical in cryptocurrency mining operations.
Google’s financial backing validates Cipher’s infrastructure capabilities in the AI space. The tech company’s involvement brings institutional credibility to the project.
The agreement covers high-performance computing colocation services for AI applications. Modern AI compute clusters require substantial power infrastructure like the 168 MW capacity planned.
Cipher will need to raise additional capital through financial markets to complete the project. The company plans to access these markets as development progresses.
The warrants give Google potential upside participation in Cipher’s growth. This equity component aligns Google’s interests with the project’s success.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
