Cipher Mining (CIFR) Stock: Bitcoin Miner Pivots to AI with Google Partnership

TLDR

Table of Contents

Cipher Mining raised its convertible bond offering from $800 million to $1.1 billion for data center expansion
Stock dropped 17.5% initially but recovered with 5% gains in after-hours trading
Company signed 10-year $3 billion AI hosting deal with Fluidstack, backed by Google guarantees
Google receives warrants for 24 million shares, giving it a 5.4% stake in Cipher Mining
Deal transforms Cipher from Bitcoin miner into AI-crypto convergence play with projected margins of 80-85%

Cipher Mining shares experienced wild swings Thursday as the company announced a major financing package and AI partnership that could reshape its business model. The stock initially plunged 17.5% before recovering with 5% gains in after-hours trading.

The Bitcoin mining company upsized its convertible bond offering to $1.1 billion from an initial $800 million proposal. The zero-interest notes mature October 1, 2031, with a conversion price of $16.03 per share.

This represents a 37.5% premium to the stock’s last closing price. Private institutional buyers can purchase an additional $120 million in notes within 13 days.

The financing comes as Cipher pivots toward artificial intelligence infrastructure. The company will use proceeds to fund data center construction at its Barber Lake facility in Texas.

Cipher also plans to accelerate its high-performance computing strategy across its 2.4 gigawatt pipeline. The company wants to expand its pipeline of development sites beyond traditional Bitcoin mining.

Google Partnership Changes Everything

The real game-changer came with Cipher’s 10-year agreement with Fluidstack, an AI cloud platform provider. The deal secures $3 billion in contracted revenue over the initial term.

JUST IN: 🇺🇸 Google buys 5.4% stake in Bitcoin miner Cipher Mining.
Big Tech + Bitcoin 🤝 pic.twitter.com/uHdN9LnCiv
— Bitcoin Archive (@BTC_Archive) September 25, 2025

Two optional five-year extensions could push total revenue to $7 billion. Fluidstack will receive 168 megawatts of dedicated IT power from Cipher’s Barber Lake facility by September 2026.

Google agreed to guarantee $1.4 billion of Fluidstack’s lease commitments. In return, the tech giant receives warrants to purchase approximately 24 million Cipher shares.

This gives Google a 5.4% stake in the mining company. The backing transforms Cipher from a niche Bitcoin miner into what analysts call an AI-crypto convergence play.

Cipher projects 80-85% site net operating income margins for the Fluidstack hosting project. The company maintains a $4.59 billion market cap with average daily volume of 36.82 million shares.

Investor Reactions Split

The financing announcement initially spooked retail investors. Bitcoin investor Mike Alfred said the company “scared a lot of beginner investors” with the convertible bond news.

However, retail sentiment on Stocktwits remained “extremely bullish” with “extremely high” chatter levels. Some investors viewed the selloff as overdone given the long-term partnership potential.

One user wrote that “Wall Street rewards patience” and called the correction necessary. Another predicted investors would soon brag about buying shares under $12.

Arete Research maintains a Buy rating with a $24 price target on Cipher shares. The sto0

2ck has gained 151% year-to-date despite recent volatility.

Cipher trades within a 52-week range of $1.86 to $15.54. The company weathered $33.3 million in insider sales by major stakeholder V3 Holding earlier this year.

Benzinga’s Edge Stock Rankings show Cipher has momentum in the 98th percentile. The company demonstrates positive price trends across multiple time frames.

The Fluidstack agreement positions Cipher to capitalize on soaring demand for AI applications. Data center capacity remains tight as companies rush to build AI infrastructure.

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