Cipher Stock Soars 10% Pre-Market Today Following $3 Billion Deal With Fluidstack

Cipher Mining Inc. (CIFR) stock soared over 10% higher on Thursday after the company entered into a ten-year agreement with Fluidstack, an artificial intelligence cloud platform provider.

Under the terms of the 10-year colocation partnership, Cipher will allocate 168 megawatts (MW) of dedicated IT power, supported by up to 244 MW in total infrastructure capacity, at its Barber Lake campus in Colorado City, Texas. The site, spanning 587 acres with potential expansion to 500 MW, is designed to cater to the evolving needs of AI and advanced computing workloads.

The deal is expected to yield around $3 billion in revenue for Cipher over the initial contract period. Two optional five-year extensions could potentially raise that figure to $7 billion.

Following the announcement, the stock became the second-most trending equity ticker on Stocktwits. Retail sentiment around Cipher stock remained in ‘extremely bullish’ territory amid ‘extremely high’ message volume levels. 

Alphabet Inc.’s (GOOGL) (GOOG) Google has agreed to guarantee $1.4 billion of Fluidstack’s lease commitments. In return, Google will receive warrants that allow it to purchase approximately 24 million shares of Cipher stock. If exercised, this would represent a 5.4% ownership stake on a pro forma basis, subject to certain conditions that could include a cash settlement.

Cipher emphasized that it will maintain full ownership of the Barber Lake facility and intends to explore capital markets to finance parts of the project.

The company is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher mining stock has gained over 204% year-to-date and over 266% in the last 12 months. 

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