Cipher Mining Stock Bounces Back: What's Fueling The Surge?

Cipher Mining Inc (NASDAQ:CIFR) shares are trending Thursday morning. Here’s a look at what’s going on.

• CIFR is charging ahead with explosive momentum. Get the inside scoop here.

What To Know: Shares of data center developer Cipher Mining surged in after-hours trading Wednesday on the heels of better-than-expected results from Nvidia, which helped lift several AI-linked stocks that are beneficiaries of Nvidia's AI ecosystem.

Nvidia beat analyst estimates on the top and bottom lines in the third quarter and issued strong guidance for the fourth quarter, outpacing even the most bullish forecasts.

"The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI is going everywhere, doing everything, all at once," Nvidia CEO Jensen Huang said in the report.

Thursday morning, Cipher announced a 10-year high-performance computing (HPC) colocation agreement with Fluidstack, an AI cloud platform that builds and operates HPC clusters. Under the agreement, Cipher will deliver an additional 39 MW of critical IT load at its Barber Lake site in Colorado City, Texas.

The agreement represents approximately $830 million in contracted revenue over the initial 10-year term. It also includes two five-year extension options that would bring total contracted revenue to approximately $2 billion if exercised. Google will backstop an additional $333 million of Fluidstack’s lease obligations to support project-related debt. 

“We’re excited to expand our partnerships with Fluidstack and Google as we develop the remaining current capacity at our Barber Lake site,” said Tyler Page, CEO of Cipher. “This third transaction further validates Cipher’s position as a leader in HPC development and underscores the strong momentum that will continue to drive growth across our pipeline of sites.”

In connection with the announcement, Cipher said it plans to offer $333 million of 7.125% senior secured notes due 2030 in a private offering to institutional investors. The company expects to use the net proceeds to finance a portion of the construction costs associated with additional facilities within the Barber Lake Facility.

CIFR Price Action: Cipher Mining shares had been trending lower in recent sessions as several AI momentum names took a breather following strong outperformance in recent months. Cipher shares were up 18.83% at $16.35 at the time of publication on Thursday, according to Benzinga Pro.

Read Next:

• Nvidia Gives ‘No Assurance’ On $100 Billion OpenAI Pact, But CEO Jensen Huang Calls Startup ‘Once-In-A-Generation’

Image: PJ McDonnell/Shutterstock.com