Google (NASDAQ:GOOG) is set to acquire warrants to purchase roughly 24 million shares of Cipher Mining (NASDAQ:CIFR) as part of a 10-year AI hosting collaboration involving Cipher and Fluidstack.
The warrants would give Google an estimated 5.4% pro forma ownership of Cipher Mining. Additionally, Google will provide support for $1.4 billion of Fluidstack’s lease obligations, helping secure financing tied to the project.
The partnership between Cipher and Fluidstack is valued at around $3 billion for the initial decade. The agreement also contains two optional five-year extensions, which, if exercised, could raise the total contract value to roughly $7 billion.
According to the deal, Cipher will provide 168 MW of critical IT load, backed by a maximum 244 MW of gross capacity, at its Lake Barber site in Colorado City, Texas. The critical IT load is scheduled for delivery by September 2026.
Cipher intends to retain full ownership of the project, tapping capital markets as necessary to fund part of the development.
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