Alphabet's Google has secured the right to purchase a 5.4% stake in Cipher Mining Inc. as part of a strategic data center agreement with AI computing startup Fluidstack. Under the deal, Google will guarantee $1.4 billion in debt owed by Fluidstack to Cipher, facilitating a 10-year lease of computing power expected to generate $3 billion in revenue. This marks Google's second agreement with Fluidstack in two months, underscoring the rising demand for AI computing resources.
Cipher Mining, which operates data centers for cryptocurrency mining, plans to leverage Google's financial backing to expand its operations. The contract includes options for two five-year renewals, potentially adding $4 billion in revenue. Following the announcement, Cipher's shares surged 24% in pre-market trading, closing at $14.14, reflecting a significant increase this year.
Google Secures Option to Acquire 5.4% Stake in Cipher Mining
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