Cipher Mining signs 168 MW, 10-year AI hosting agreement with Fluidstack

Cipher Mining (CIFR) announced a 10-year high-performance computing, or HPC, colocation agreement with Fluidstack, an AI cloud platform that builds and operates HPC clusters for some of the world’s largest companies. Under the agreement, Cipher will deliver 168 MW of critical IT load, supported by a maximum of 244 MW of gross capacity, at its Barber Lake site in Colorado City, Texas. The agreement represents approximately $3B in contracted revenue over the initial 10-year term and includes two five-year extension options. If exercised, these extension options would bring the total contract revenue to approximately $7B. In addition, Google (GOOG) will backstop $1.4B of Fluidstack’s lease obligations to support project-related debt financing and will receive warrants to acquire approximately 24 million shares of Cipher common stock, equating to an approximately 5.4% pro forma equity ownership stake, subject to adjustment and a potential cash settlement under certain circumstances. Cipher plans to retain 100% ownership of the project and access the capital markets as necessary to fund a portion of the project. Estimated project costs are $9M-$11 million per MW of critical IT load. Google is to receive warrants for ~5.4% pro forma equity ownership stake, subject to adjustment and potential cash settlement under certain circumstances.