Cipher Mining has signed a ten-year contract with Fluidstack to supply 168 MW of computing power for data centers. The value of this agreement is $3 billion, with Google joining the collaboration as a guarantor for part of the financial obligations.
This is reported by Finway
Terms of the Strategic Agreement Between Cipher Mining, Fluidstack, and Google
According to the agreements, Cipher Mining will place its capacities at the Barber Lake data center in Colorado City, providing Fluidstack with the necessary resources for artificial intelligence processing and large language models (LLM). If options for extending the collaboration for another five years are realized, the contract value could increase to $7 billion.
Fluidstack specializes in cloud technologies and operates data centers, providing companies with access to GPU capabilities for training LLM. This agreement will allow the platform to significantly expand its presence in the high-performance computing (HPC) market.
Details of Google’s Involvement and Cipher Mining’s Development Plans
Google acts as a guarantor for part of Fluidstack’s obligations to Cipher Mining — the company has committed to cover $1.4 billion within the total value of the agreement. In exchange, Google will receive warrants to purchase shares of the miner. If these warrants are converted, Google will own 5.4% of Cipher Mining’s shares, while the latter will retain full control over the asset at Barber Lake.
Currently, the total installed capacity of the Barber Lake center is 244 MW, and the company plans to increase this figure to 500 MW in the future.
“We are very excited to collaborate with Fluidstack in developing data centers for high-performance computing (HPC) and look forward to welcoming Google as an investor in Cipher. This significant agreement for transformations strengthens our position in the HPC sector as we continue to draw attention to our large and growing portfolio of assets,” said CEO Tyler Page.
Additionally, the company announced the issuance of convertible bonds worth $800 million, with a potential increase of $120 million if options are exercised. The funds raised are planned to be used for scaling the Barber Lake data center.
Previously, Cipher Mining secured $150 million for the construction of a new data center, Black Pearl, indicating the company’s active expansion in the computing power market.