Crypto Currents: Cipher Mining lands AI hosting deal with Google as backer

Google is engaging with the digital asset space by financially backing a $3B AI hosting deal for crypto miner Cipher Mining and taking an equity stake in the company, while SharpLink Gaming is set to tokenize its stock on the Ethereum blockchain. Meanwhile, the market for crypto ETFs continues to expand with new filings from major players. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

CIPHER MINING ANNOUNCES AI HOSTING AGREEMENT, GOOGLE TO BACKSTOP DEAL: In a landmark deal signaling deepening ties between big tech and digital asset infrastructure, Cipher Mining (CIFR) announced a 10-year, $3B high-performance computing colocation agreement with AI cloud platform Fluidstack. The partnership marks a significant validation for the crypto-adjacent sector, as Google (GOOGL) will backstop $1.4B of Fluidstack’s lease obligations in support of the deal and will receive warrants for an equity stake in Cipher. This move is seen by investors as a major step in the convergence of AI and blockchain technologies, repurposing industrial-scale data centers for new revenue streams.

SHARPLINK TOKENIZES STOCK ON ETHEREUM: Underscoring the growing trend of real-world asset tokenization, SharpLink Gaming (SBET) announced its intention to tokenize its common stock on the Ethereum (ETH-USD) blockchain. According to a press release, SharpLink, which is one of the largest corporate holders of ether, is partnering with financial technology firm Superstate to become the first public company to natively issue its equity on Ethereum. The collaboration will also explore pathways for trading tokenized shares on decentralized finance protocols in a compliant manner, a move that could “redefine market structure itself,” according to SharpLink co-CEO Joseph Chalom. The initiative aligns with the SEC’s “Project Crypto” innovation agenda and aims to demonstrate how blockchain can improve market efficiency and create shareholder value.

NEW WAVE OF CRYPTO ETFS:  The market for crypto-related ETFs continues to evolve with increasingly sophisticated products. REX Shares and Osprey Funds have collaboratively launched the REX-Osprey ETH + Staking ETF, the first U.S. ETF to offer investors exposure to both spot ether and its native staking rewards. The fund, which operates under the strict 1940 Act, will pass all staking rewards directly to investors. In another development, crypto market maker GSR has filed for five new crypto ETFs. One of the proposed funds, the GSR Digital Asset Treasury Companies ETF, would invest in publicly traded companies that hold digital assets, such as Strategy (MSTR) and BitMine Immersion Technologies (BMNR). Other filings include multiple staking-focused funds and an ETF that would track a bundle of bitcoin (BTC-USD), ether, and solana (SOL-USD).

PRICE ACTION:  As of time of writing, bitcoin (BTC-USD) was trading at approximately $111,586.28, while ether (ETH-USD) was trading near $3,999.33, according to price data from CoinDesk.