Cipher Mining Inc. (NASDAQ:CIFR) saw its stock jump 12% on Thursday after unveiling a major 10-year AI hosting agreement with Fluidstack, locking in roughly $830 million in contracted revenue.
Under the new deal, Cipher will supply an additional 39 MW of critical IT load—supported by up to 56 MW of gross capacity—at its Barber Lake facility in Colorado City, Texas. With this expansion, Fluidstack is slated to lease the entire 300 MW of capacity available at Barber Lake.
The contract also includes two optional five-year extensions. If exercised, those add-ons would raise total contracted revenue tied to this agreement to around $2.0 billion, and lift the total value of the broader partnership to approximately $9.0 billion.
In a significant show of support, Google agreed to backstop an additional $333 million of Fluidstack’s lease commitments to facilitate project-related lending. This boosts Google’s total backstop across its partnership with Fluidstack and Cipher to $1.73 billion.
To fund the build-out, Cipher plans to rely on project financing along with about $118 million in additional equity. The company estimates development costs of roughly $9–$10 million per MW of critical IT load and anticipates Net Operating Income margins in the 85%–90% range for the site.
“We’re excited to expand our partnerships with Fluidstack and Google as we develop the remaining current capacity at our Barber Lake site,” said Tyler Page, Cipher’s CEO. “This third transaction further validates Cipher’s position as a leader in HPC development and underscores the strong momentum that will continue to drive growth across our pipeline of sites.”
As part of the broader financing effort, Cipher also announced plans to issue $333 million of additional 7.125% senior secured notes due 2030 to help support construction of the expanded facilities.