Cipher Mining Soars 32% on $5.5 Billion Amazon Data Center Deal
Cipher Mining Inc.'s shares jumped more than 32% on Monday after the company announced a groundbreaking $5.5 billion, 15-year lease deal
Quick overview
- Cipher Mining Inc.'s shares surged over 32% following a $5.5 billion lease deal with Amazon Web Services for AI infrastructure.
- The company reported improved financials with a net loss of only $3 million and adjusted earnings of $41 million in the third quarter.
- Cipher is pivoting towards AI and high-performance computing to adapt to market changes and increasing pressure on Bitcoin mining profitability.
- The firm has also secured majority ownership in a one-gigawatt AI hosting site in West Texas and has a robust pipeline of 3.2 gigawatts of site capacity.
Cipher Mining Inc.’s shares jumped more than 32% on Monday after the company announced a groundbreaking $5.5 billion, 15-year lease arrangement with Amazon Web Services. This shows how cryptocurrency mining companies are adjusting to keep up with the market.
The deal says that Cipher has to build the space and power infrastructure for AI workloads, with 300 megawatts of capacity coming in two waves starting in July 2026. The building will have both air and liquid cooling, and rent will start in August 2026.
Cipher Mining’s Strategic Pivot to AI Infrastructure Pays Off
During Monday’s trading session, Cipher’s shares rose from $18.65 to a high of $24.80 before closing at $22.76 by the end of the day. The news came out with the company’s third-quarter earnings report, which revealed that things were getting better financially. The net loss was only $3 million, and the adjusted earnings were $41 million, compared to a net loss of $46 million and adjusted earnings of $30 million the quarter before.
Tyler Page, the CEO, remarked, “The third quarter was a real turning point for Cipher.” “We did a very important deal with Fluidstack and Google that solidified our reputation in the HPC space.” We are now taking another big step ahead after that deal by securing our first direct lease with a Tier 1 hyperscaler.
Bitcoin miners are changing their strategy to focus on AI and high-performance computing (HPC) hosting because they are under pressure to make money after the halving event in April 2024, which cut mining incentives to 3.125 Bitcoin. Miners are exploring new ways to make money in the expanding artificial intelligence industry by using their existing power infrastructure and energy capacity.
AWS Deal and Massive Development Pipeline
Cipher has ties to more than just Amazon in the tech world. As part of a separate $3 billion, multi-year data center deal with AI data center operator Fluidstack, Google bought a 5.4% share in the mining firm in September. Cipher’s AI hosting contracts now add up to almost $8.5 billion in leasing payments.
Cipher also announced on Monday that it has gained majority ownership in a joint venture to build a one-gigawatt AI hosting site in West Texas called “Colchis.” Cipher will pay for most of the deal and possess about 95% of the company’s stock. The 620-acre property has signed a direct connect agreement with American Electric Power, and the goal is to get it powered up by 2028.
Cipher isn’t the only company that is changing the industry. On the same day, IREN, another Bitcoin miner, announced a $9.7 billion, multi-year GPU cloud services contract with Microsoft. In August, TeraWulf signed a $3.7 billion hosting agreement with Fluidstack.
Page stressed the company’s forward-looking strategy: “As the industry changes quickly and proves our point that Tier 1 hyperscalers would turn to Cipher and to non-traditional areas in Texas, we’re more confident than ever that Cipher is one of the best-positioned companies in the world to take advantage of the growing power shortfall.”
The company also successfully completed a $1.3 billion convertible note offering during the quarter and now has a pipeline of 3.2 gigawatts of site capacity. This puts it in a strong position for future growth in the AI infrastructure market.
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