Cipher Mining Inc (CIFR)

[Whalatane]

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.

Kiwi