Google Supports Cipher Mining's $3 Billion Data Center Pact As Company Launches $800 Million Convertible Notes Offering

Cipher Mining Inc. (NASDAQ: CIFR) secured a 10-year colocation agreement with Fluidstack valued at roughly $3 billion, positioning itself as a major player in high-performance computing data centers. The deal also brings in Alphabet Inc. (NASDAQ: GOOGL) as a financial backer, underscoring growing demand for AI-driven infrastructure.

The agreement covers 168 megawatts of IT load at Cipher's Barber Lake site in Colorado City, Texas. Optional five-year extensions could lift the total contract value to about $7 billion. With land available for expansion up to 500 MW, Cipher aims to support next-generation computing requirements at scale.

Google's Role

Google agreed to backstop $1.4 billion of Fluidstack's lease obligations, providing support for project financing. In return, the company will receive warrants equal to about 5.4% of Cipher's equity. Cipher will maintain full project ownership while raising additional funds through capital markets if needed.

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CEO Tyler Page said the transaction highlights Cipher's momentum in high-performance computing and will likely be the first of several similar agreements.

Fluidstack president César Maklary noted the partnership will accelerate the development of infrastructure essential for leading AI companies.

Financing Plans

Cipher also announced an $800 million private offering of convertible senior notes due in 2031, with the option to raise an additional $120 million. Proceeds will be used to support capped call transactions, limit shareholder dilution, and expand data center projects across its 2.4-gigawatt pipeline.

Investors have welcomed Cipher's growth strategy despite recent insider selling. Analysts highlighted that Cipher Mining stock gains persisted even after a $33 million insider sale, reflecting confidence in its long-term AI infrastructure strategy.

Price Action: At the last check on Thursday, CIFR shares were trading 1.49% lower at $14.14 premarket.

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