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Cipher Mining (CIFR) jumped 19% on Monday after signing a $5.5 billion lease deal with Amazon Web Services (AWS), pushing deeper into artificial intelligence (AI) infrastructure.
The 15-year deal sees Cipher deliver 300 megawatts (MW) of power capacity to AWS by the end of 2026, with the first phase starting in July, according to the firm. press release. The facilities will include air- and liquid-cooled racks, key features for the type of high-performance computing (HPC) AI models require.
Cipher also announced that it has taken majority control of a new joint venture to build a 1 gigawatt site in West Texas. The facility, called “Colchis”, is located on 620 hectares near an American electric power substation and has secured a Direct Connect agreement with AEP. Construction is slated to be completed in 2028, the firm said.
These moves underscore a deeper shift in the role of crypto mining companies, which are increasingly being tapped to provide the power and infrastructure that big tech companies with high AI ambitions need. Bitcoin miners already manage large-scale energy contracts and computing infrastructure, now in high demand from hyperscalers like AWS and Google.
IREN (IREN), another bitcoin miner that has pivoted to AI computing, announced Monday a $9.7 billion cloud computing deal with Microsoft, sending its stock more than 20% higher.
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Cipher on Monday reported $72 million in Q3 revenue and adjusted earnings of $41 million. The AWS lease and a previously announced $3 billion deal with Fluidstack and Google bring its total AI hosting contracts to about $8.5 billion.
The firm said its pipeline now includes 3.2 gigawatts (GW) of site capacity.
“As the industry rapidly evolves and validates our thesis that Tier 1 hyperscalers will turn to Cipher and non-traditional areas in Texas, we are more confident than ever that Cipher is among the best-positioned companies in the world to seize additional opportunities created by the growing power deficit,” CEO Tyler Page said in a statement.
