The high-performance computing and artificial intelligence (AI) sector is experiencing significant growth. In a major development, Google has entered into a 10-year AI hosting agreement with Fluidstack, which includes acquiring warrants to purchase approximately 24 million shares of Cipher Mining (CIFR). This stake represents about 5.4% equity ownership in the Bitcoin miner.
This deal highlights Google's expanding commitment to AI infrastructure and enhances Cipher Mining's position in the large-scale computing services market. Google will also backstop $1.4 billion of Fluidstack's lease obligations, supporting project-related debt financing. The contract's base value is around $3 billion for the initial term, with potential to reach $7 billion if two optional five-year extensions are activated.
By September 2026, Cipher Mining is slated to deliver 168 megawatts of critical IT load at its Texas-based Lake Barber facility. The company will maintain full ownership of the project and utilize capital markets for any additional funding requirements. CIFR stock initially jumped 20% on the announcement and was up 5% in premarket trading, continuing a strong rally that has seen the stock increase seven-fold from its April low as Bitcoin miners pivot towards AI and high-performance computing.