James Richardson
Cipher Mining (NASDAQ: CIFR), the fourth-largest publicly traded Bitcoin miner, has unveiled a dual strategy combining a major AI cloud deal and a large private financing round to accelerate its high-performance computing (HPC) ambitions.
Cipher signed a 10-year colocation agreement with AI cloud provider Fluidstack, granting 168 MW of critical IT load capacity at its 244 MW Barber Lake facility in Colorado City, Texas. The deal is estimated to generate $3 billion in value over the initial term, with options for two five-year extensions that could push the total to around $7 billion.
In a significant twist, Google will guarantee $1.4 billion of Fluidstackโs lease obligations in exchange for warrants to purchase roughly 24 million Cipher shares โ about 5.4% of the companyโs equity. Despite this backing, Cipher emphasized that it will retain full ownership of the Barber Lake project.
โWe are excited to collaborate with Fluidstack on next-generation HPC data centers and welcome Google as a strategic partner,โ said CEO Tyler Page. โThis deal is just the beginning as we continue to expand our HPC pipeline and strengthen our position in this rapidly growing sector.โ
$800M Convertible Notes Offering
Alongside the Fluidstack partnership, Cipher announced plans to raise $800 million through a private offering of convertible senior notes due October 2031. The notes will not bear interest and can be converted into shares, cash, or a mix of both under specific conditions. Initial buyers will also have a 13-day option to acquire up to an additional $120 million in notes.
Cipher stated that proceeds will be used to:
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Fund the Barber Lake project buildout
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Support its 2.4 GW HPC pipeline
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Finance additional site development projects
Market Reaction and Stock Performance
Following the announcement, Cipherโs stock (CIFR) surged 22.4% in pre-market trading on Thursday before retreating. As of the latest update, shares are priced at $14.95, giving the company a market capitalization of $5.6 billion. Cipher stock has delivered a 192% year-to-date gain, reflecting growing investor confidence in its HPC-driven strategy.
