Cipher Mining Inc. announced a 10‑year high‑performance computing colocation agreement with AI‑cloud platform Fluidstack that will add 39 MW of critical IT load and 56 MW of gross capacity to its Barber Lake facility in Colorado City, Texas. The contract gives Fluidstack a lease of the entire 300 MW of the site and is expected to generate approximately $830 million in contracted revenue over the initial decade, with two five‑year extension options that could raise total revenue to about $2 billion.
The deal marks a decisive shift for Cipher, which has been transitioning from a Bitcoin‑mining focus to a broader data‑center strategy. In Q3 2025 the company reported $72 million in revenue and a net loss of $3 million, while adjusted earnings reached $41 million. The move is driven by the increasing difficulty of Bitcoin mining after the latest halving, which has compressed margins, and by the rapid growth of AI workloads that demand large‑scale GPU clusters. Fluidstack’s expertise in building and operating GPU‑based HPC clusters positions it as a key partner in this transition.
Financially, Cipher will finance the expansion with project debt and an additional $118 million in equity. Project costs are estimated at $9–$10 million per MW of critical IT load, and the company expects site net operating income margins of 85–90 %. Google has increased its backstop for the lease by $333 million, bringing the total guarantee to $1.73 billion and providing significant financial security for the project.
The 39 MW of critical IT load is slated for delivery by January 2027. While the AI hosting expansion will occupy a substantial portion of the site, Cipher’s Bitcoin‑mining operations remain active, with 629 BTC mined in Q3 2025 generating $72 million in revenue. The company’s dual‑use strategy allows it to balance the higher predictability of AI contracts with the higher upside potential of mining.
Market reaction to the announcement was strong. Cipher’s shares surged nearly 13 % in pre‑market trading on the day of the announcement, and a subsequent 20 % jump followed news of a potential junk‑bond offering to fund the expansion, both underscored by Google’s backing. CEO Tyler Page said the deal “firmly establishes our credibility in the HPC space and underscores the strong momentum that will continue to drive growth across our pipeline of sites.”
The agreement positions Cipher to capture a growing share of the AI infrastructure market, diversifying its revenue base and reducing exposure to Bitcoin’s volatility. With a long‑term, high‑margin contract and robust financial support, the company is set to accelerate its transition to a data‑center operator that serves both cryptocurrency and AI workloads.
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