Cipher Mining shares jump 33% on $5.5 billion AWS AI deal, new 1 GW Texas site
Cipher Mining's stock surged 33% after announcing a $5.5 billion, 15-year AI hosting deal with AWS and a new 1 GW Texas site.Summary
Bitcoin miner turned AI diversifier, Cipher Mining, announced a significant 15-year, $5.5 billion lease agreement with Amazon Web Services (AWS) to supply 300 MW of capacity for AI workloads starting in 2026. This deal follows a previous agreement with Fluidstack backed by Google and has propelled Cipher's stock up over 33%.
Additionally, Cipher revealed a joint venture to develop a 1-gigawatt site in West Texas, named "Colchis," where Cipher will hold approximately 95% equity ownership. This site is fully suited for High-Performance Computing (HPC) data centers and has a direct connection agreement with American Electric Power.
Despite these positive developments, Cipher reported a net loss of $3 million for the third quarter, though its total AI hosting contracts now represent about $8.5 billion in lease payments. The company's stock gain reflects a broader trend where bitcoin miners are leveraging their existing power infrastructure and data center access to capitalize on the AI boom, similar to IREN's recent large deal with Microsoft.
(Source：The Block)