Cipher Mining reaches $3 billion custody agreement with Fluidstack, Google provides loan guarantee to buy 5.4% CIFR stock

Bitcoin mining company Cipher Mining announced that it has signed a 10-year high-performance computing (HPC) hosting agreement with AI cloud platform Fluidstack. Among them, Google will provide Fluidstack with $1.4 billion in lease obligation guarantees to support project-related debt financing. In return, Google will receive warrants to acquire approximately 5.4% of Cipher Mining stock.
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Bitcoin mining company Cipher Mining (US stock code: CIFR) announced today (25th) that it has signed a ten-year high-performance computing (HPC) hosting agreement with the AI cloud platform Fluidstack, with a total contract value of US$3 billion, which can be further expanded to US$7 billion if the extension option is enabled. At the same time, Google provided key endorsement of the deal with a $1.4 billion loan guarantee, and in return, Google obtained approximately 5.4% of Cipher Mining's equity.

Details of the agreement and Google’s key role

With the surge in demand for AI applications, the power and cooling assets in the hands of mining companies have become a natural springboard for the transformation of high-performance computing. Cipher Mining pointed out that this cooperation will provide Fluidstack with GPU-intensive computing services at the core of its 168 MW critical IT load in Barber Lake, Texas. The contract has a term of 10 years and a total contract value of US$3 billion. At the same time, the contract also includes two five-year extension options. If both parties choose to extend the cooperation, the total contract revenue is expected to reach approximately US$7 billion.

It is also worth noting that in this agreement, the technology giant Google serves as an "accelerator" on both sides of liquidity and demand. The announcement states that Google will provide Fluidstack with $1.4 billion in lease obligation guarantees to support project-related debt financing. In return, Google will receive warrants to acquire approximately 24 million shares of Cipher common stock, equivalent to approximately 5.4%. It is worth noting that Google also previously invested about 14% in another mining company, TeraWulf.

Cipher CEO Tyler Page said: "We are pleased to work with Fluidstack to develop HPC data centers and look forward to Google becoming an investor in Cipher. This transformative transaction strengthens our momentum in the HPC field, and we believe this is just the beginning of many transactions for us in the rapidly growing AI field."

César Maklary, co-founder and president of Fluidstack, also emphasized: "Fluidstack and Cipher Mining joins hands to accelerate the construction of critical infrastructure required for cutting-edge AI companies."

Cipher Mining's stock price has tripled this year

According to Google Finance data, Cipher Mining's stock price has risen 204% since this year to the current US$14.14, and its market value has also grown to US$5.561 billion.