Google has acquired a 5.4% stake in Bitcoin mining firm Cipher Mining. The transfer underscores the rising intersection of cryptocurrency and synthetic intelligence infrastructure.
The acquisition, introduced Thursday, accompanies a $3 billion multi-year settlement for Fluidstack, an AI cloud platform that builds and operates HPC clusters for main firms, to lease computing capability from Cipher’s Texas web site.
Google Backs Main Texas Knowledge Middle Growth
The deal highlights rising convergence between AI platforms and crypto mining. Cipher Mining will ship 168 megawatts of computing energy to Fluidstack, supported by as much as 244 MW of gross capability, at its Barber Lake web site in Colorado Metropolis, Texas. The location can broaden to 500 MW and spans 587 acres, providing area for long-term progress.
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Underneath the phrases, Google will assure $1.4 billion of Fluidstack’s lease obligations to Cipher. In trade, it can obtain warrants for roughly 24 million shares of Cipher widespread inventory. This makes Google a big minority investor whereas supporting financing for one of many largest AI-ready mining services within the U.S.
Cipher CEO Tyler Web page described the partnership as a milestone for the corporate’s high-performance computing ambitions. “This collaboration allows us to scale our infrastructure while serving frontier AI workloads efficiently,” he mentioned.
This transfer mirrors Google’s earlier funding in TeraWulf in August, when it secured an 8% stake in trade for guaranteeing $1.8 billion of Fluidstack lease obligations for TeraWulf’s 200 MW AI internet hosting capability. That deal helped TeraWulf shift from purely Bitcoin mining to high-performance computing, setting a precedent for Google’s twin give attention to crypto and AI information facilities.
Miners Speed up Shift Towards AI Infra
Analysts counsel this funding may velocity up AI and crypto mining mixing. With Google’s backing, Cipher beneficial properties capital and credibility, which can encourage different miners to broaden into AI internet hosting. The deal may intensify competitors in Texas, a lovely state for its low vitality prices and deregulated grid.
The settlement consists of two five-year extension choices, doubtlessly lifting complete contracted income to $7 billion. Because the AI trade grows quickly, this transfer indicators a brand new period of hybrid initiatives that merge monetary, computational, and energy-intensive sectors.
Cipher Mining inventory efficiency YTD / Supply: Yahoo Finance
A mid-September evaluation by The Miner Magazine confirmed that Bitcoin mining shares prolonged their restoration and outperformed Bitcoin. The pattern was partly defined by traders rewarding firms that pivot towards GPU and AI providers.
Cipher Mining (CIFR) shares surged from $14 to $17 on the day. They later retreated to shut at $11.66. 12 months-to-date, the inventory has climbed about 151.3%.
