Cipher Mining Signs $3 Billion Agreement with Fluidstack, with Google Participating
Date: 2025-09-26 Author: Henry Casey Categories: BUSINESS
Mining firm Cipher Mining announced a 10-year, $3 billion strategic agreement with Fluidstack. Under this agreement, the company commits to providing 168 MW of computing power at its Barber Lake facility in Colorado City. If options are exercised, the agreement will be extended for an additional five years, bringing the total value to $7 billion.
Fluidstack is known as a cloud platform and data center operator offering access to GPUs for training large language models. Collaboration with Cipher Mining will allow the company to expand its presence in the high-performance computing market.
Google's participation is particularly significant. The tech giant is guaranteeing a portion of Fluidstack's $1.4 billion in liabilities. In exchange, Google will receive warrants granting it the right to acquire Cipher Mining shares. If exercised, Google's stake will be approximately 5.4%, but Cipher Mining will retain full control of the Barber Lake facility.
Barber Lake's current capacity is estimated at 244 MW, and the company plans to expand to 500 MW. Cipher Mining CEO Tyler Page noted that the deal strengthens the company's position in the high-performance computing (HPC) space. He stated that collaboration with Fluidstack and Google's participation opens new opportunities for growth and further business transformation.
Along with the signing of the contract, the company announced the issuance of $800 million in convertible bonds. Upon exercise of the associated options, Cipher Mining will receive an additional $120 million. The proceeds will be used to expand Barber Lake's capacity and develop its infrastructure.
It's worth noting that the company previously raised $150 million for the construction of another data center, Black Pearl. These steps demonstrate Cipher Mining's long-term strategy to strengthen its role in the HPC market and infrastructure for modern technologies, including artificial intelligence.
Thus, the agreement between Cipher Mining and Fluidstack, supported by Google, is one of the largest contracts in the mining and cloud industry, demonstrating the growing interest of major players in computing resources for the development of new technologies.
