Cipher Mining Surges on $3B AI Deal with Google-Backed Fluidstack
10-year, 168 MW agreement to generate ~$3 billion, marking a strategic pivot from crypto mining to high-performance computing.
Cipher Mining (NASDAQ: CIFR) saw its shares jump after announcing a landmark 10-year AI hosting agreement with Fluidstack, a deal expected to lock in approximately $3 billion in revenue and significantly diversify the company's business beyond cryptocurrency mining. The move signals a major strategic pivot, leveraging its energy and infrastructure expertise to capitalize on the booming demand for artificial intelligence computing.
The agreement, , commits 168 megawatts of power for high-performance computing (HPC) services. This pivot towards AI is bolstered by a significant vote of confidence from Google, which is taking an approximate 5.4% pro forma equity stake in Cipher through warrants and backstopping $1.4 billion of Fluidstack's lease obligations. Following the news, , reflecting strong investor enthusiasm for the new, long-term revenue stream.
This strategic shift comes as the cryptocurrency mining industry faces tightening margins, a trend accelerated by the recent Bitcoin halving event which reduced mining rewards. The move into AI hosting is part of a broader industry trend where miners like Core Scientific and TeraWulf are repurposing their vast energy infrastructure for more lucrative and stable contracts. AI workloads can generate substantially higher revenue per kilowatt-hour compared to traditional Bitcoin mining, making the transition financially compelling.
Wall Street has taken note of Cipher's AI potential even before this announcement. Earlier in the month, , citing the company's emerging AI data center capabilities. This deal solidifies that outlook, providing a stable, decade-long revenue stream that contrasts sharply with the volatility of crypto markets.
By securing a multi-billion dollar contract with a major player in the AI cloud space, Cipher Mining is positioning itself as a key supplier of the critical infrastructure powering the next wave of technological growth. This pivot not only de-risks its business model but also aligns the company with one of the most powerful secular growth trends in the global economy.