Shares of Cipher Mining (CIFR) swung sharply after the company signed a 10-year AI hosting agreement with Fluidstack, with Google (GOOGL) backing the project in exchange for an ownership stake. The deal initially sent the crypto-mining stock higher by 17.5% on Thursday. However, CIFR stock pulled back 5% in after-hours trading as Bitcoin slid below $109,000.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
For context, Cipher is a Bitcoin (BTC) mining company that builds and operates large-scale data centers to produce new Bitcoin and support the blockchain network. Meanwhile, Fluidstack provides cloud-based high-performance computing and infrastructure services.
More Details About the Deal
As part of this deal, Google will acquire warrants for about 24 million Cipher shares, giving it roughly 5.4% ownership in the company, valued at $3 billion. Under the agreement, Google will cover $1.4 billion in lease obligations for Fluidstack, helping Cipher secure financing for the project.
The contract could grow to $7 billion if two optional five-year extensions are exercised. Meanwhile, Cipher plans to provide 168 megawatts of data-center capacity at its Lake Barber site in Colorado City, Texas, by September 2026, and will keep full ownership while raising extra funds from the capital markets if needed.
Overall, the deal positions Cipher as more than a Bitcoin miner, offering investors exposure to both AI and crypto growth.
Is Cipher Mining a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on CIFR stock based on 11 Buys and one Hold assigned in the past three months. Furthermore, the average price target for Cipher Mining’s stock is $10.27 per share, which implies 12% downside risk from current levels.
