Key Takeaways
- Cipher Mining will deliver 168 MW of high-performance computing capacity at its Barber Lake site in Texas under a 10-year deal with Fluidstack valued at $3 billion.
- Google will guarantee $1.4 billion of Fluidstack’s lease obligations and receive warrants for about 24 million Cipher shares, equal to a 5.4% stake.
- The site’s capacity could scale from 244 MW to as much as 500 MW, with two five-year extensions potentially raising total contract value to $7 billion.
- While retaining its bitcoin mining roots, Cipher is expanding into AI-focused data centers, with a broader 2.4 GW pipeline of sites in development.
Nasdaq-listed Cipher Mining has signed a 10-year agreement with Fluidstack to develop and operate a high-performance computing data center in Texas, in a deal backed by Google and valued at approximately $3 billion.
As part of the arrangement, Google will guarantee $1.4 billion of Fluidstack’s lease obligations, helping facilitate project financing. In exchange, Google will receive warrants for about 24 million shares of Cipher stock, representing roughly 5.4% of the company’s pro forma equity.
The agreement will see Cipher deliver 168 megawatts (MW) of critical IT load at its Barber Lake site in Colorado City, with capacity scaling to 244 MW.
The site, which spans 587 acres, has potential for expansion up to 500 MW. With two five-year extension options, the total contract value could rise to around $7 billion.
Cipher, known for its bitcoin mining operations, plans to retain full ownership of the site and may turn to capital markets to support the build-out, as project capital costs are estimated at $9 million to $11 million per MW, with operating margins projected between 80% and 85%.
Beyond the Fluidstack deal, Cipher is developing a pipeline of approximately 2.4 gigawatts across other sites for future high-performance deployments. The company described the agreement as part of a broader strategy to meet rising demand for compute capacity from AI developers.
Read More: Naver Eyes Control of Upbit in Potential Acquisition Deal! Know the Details
