Bitcoin miner pivots deeper into high-performance computing with 10-year partnership
Cipher Mining, one of the world’s largest publicly listed Bitcoin miners, has announced a landmark $3 billion AI hosting agreement with cloud infrastructure firm Fluidstack, backed by a significant financial guarantee from Google. The deal underscores how Bitcoin mining firms are diversifying into high-performance computing (HPC) as demand for artificial intelligence infrastructure accelerates.
Details of the agreement
The 10-year contract will see Cipher provide 168 MW of critical IT load capacity at its Barber Lake site in Colorado City, Texas. With options for two five-year renewals, the total value of the contract could reach $7 billion.
In a notable move, Google agreed to guarantee $1.4 billion of Fluidstack’s lease obligations. In exchange, it will secure warrants to acquire around 24 million Cipher shares, representing roughly 5.4% of the company’s equity. Cipher emphasized that it retains full ownership of its infrastructure, ensuring long-term control over the project.
Strategic financing plan
Alongside the Fluidstack partnership, Cipher unveiled plans for an $800 million private offering of zero-coupon convertible senior notes due in 2031. These notes, which bear no interest, can be converted into shares, cash, or both, providing Cipher with flexible financing to expand its growing HPC pipeline.
Proceeds will be directed toward completing the Barber Lake project and scaling the firm’s broader 2.4 GW HPC development pipeline. Cipher also indicated the notes could help fund new site builds across its U.S. portfolio.
Following the announcement, Cipher’s stock price spiked by more than 22% in pre-market trading, before stabilizing near $14.95, giving the company a market cap of $5.6 billion. Shares have gained over 190% year-to-date, reflecting strong investor appetite for firms straddling both crypto and AI sectors.
Industry analysts note that the deal highlights the convergence between Bitcoin mining and AI infrastructure. “Cipher is positioning itself as a hybrid infrastructure company, not just a miner,” one market strategist commented. “This dual model could become a template for the sector as AI demand reshapes energy-intensive computing.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.