Cipher Mining rockets 32% after $5.5B data center deal with Amazon

Bitcoin mining institution Cipher Mining surged much than 32% aft revealing a caller 15-year woody with tech elephantine Amazon, adding to a question of partnerships betwixt large exertion companies and crypto miners.

The 15-year lease statement with Amazon Web Services, valued astatine $5.5 billion, requires Cipher to supply turnkey abstraction and powerfulness for AI workloads successful 2 phases, starting successful July and August adjacent year, the Bitcoin (BTC) miner announced connected Monday.

Cipher Mining besides posted a importantly narrowed nett nonaccomplishment of $3 cardinal and a emergence successful adjusted net of $41 cardinal for the 3rd quarter, compared to a nett nonaccomplishment of $46 cardinal and adjusted net of $30 cardinal successful the erstwhile quarter.

This led to Cipher’s banal shooting up 32% from $18.65 to a highest of $24.80 during trading connected Monday earlier settling backmost to $22.76 by the extremity of the trading day.

Source: Cipher Mining

Bitcoin miners person been progressively diversifying income streams by shifting their vigor capableness toward AI and HPC hosting services aft the April 2024 halving chopped mining rewards to 3.125 Bitcoin, which has wounded wide profitability.

Cipher and Google are successful concern arsenic well

In September, Google acquired a 5.4% involvement successful Cipher Mining arsenic portion of a $3 billion, multi-year information halfway woody with AI information halfway institution Fluidstack.

Cipher CEO Tyler Page said successful a connection connected Monday that the institution “executed a pivotal transaction with Fluidstack and Google, which firmly established our credibility successful the HPC space.”

“We are present pursuing that transaction with different large measurement guardant by signing our archetypal nonstop lease with a Tier 1 hyperscaler,” helium added.

Related: US vigor caput floats faster nonstop grid entree for AI and crypto miners

Along with the Amazon deal, Cipher besides announced it has a bulk involvement successful a associated task to make a one-gigawatt AI hosting tract successful West Texas, known arsenic Colchis. Under the deal, Cipher provides astir of the financing and volition instrumentality a 95% equity ownership.

Miners and tech giants making deals

Tech giants person go progressively progressive with Bitcoin miners this year. Bitcoin mining institution IREN signed a multi-year GPU unreality services contract with Microsoft worthy $9.7 cardinal connected Monday arsenic well.

Meanwhile, TeraWulf announced a $3.7 billion hosting statement successful August with Fluidstack, backed by Google genitor institution Alphabet.

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