Why Did Cipher Mining Stock Surge 12% Pre-Market Today?

• The deal will add roughly $830 million in revenue over the first decade.
• The agreement includes two five-year extension options, potentially increasing the transaction’s total value to $2 billion. 
• Google has pledged an additional $333 million to backstop Fluidstack’s lease obligations.

Cipher Mining Inc. (CIFR) announced on Thursday that it has secured a major 10-year high-performance computing (HPC) colocation deal with Fluidstack, an AI cloud platform that operates HPC clusters for global enterprises.

The deal will add roughly $830 million in revenue over the first decade. Following the announcement, Cipher Mining’s stock traded over 12% higher in Thursday’s premarket. 

However, on Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid ‘low’ message volume levels. 

Contract Details

Under the agreement, Cipher will provide an additional 39 MW of critical IT load at its Barber Lake site in Colorado City, Texas, supported by up to 56 MW of gross capacity. 

The agreement includes two five-year extension options, potentially increasing the transaction’s total value to $2 billion. Across the full partnership, if all options are exercised, the cumulative contracted revenue could reach approximately $9 billion.

Google’s Backstop Support 

To reinforce project financing, Google has pledged an additional $333 million to backstop Fluidstack’s lease obligations, raising the total to $1.73 billion. Cipher has secured funding and plans to combine this with approximately $118 million in equity contributions to finance the construction of new HPC facilities.

The agreement operates under a modified gross lease with annual escalators. Cipher anticipates site net operating income (NOI) margins of 85%-90% and estimates construction costs of $9-$10 million per MW of critical IT load.

Barber Lake, spanning 587 acres and with potential to expand to 500 MW, is designed to meet the evolving needs of AI and advanced computing workloads.

CIFR stock has gained 215% in 2025 and over 124% in the last 12 months. 

Also See: Palantir Secures Crucial Security Clearance To Expand Australian Operations

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