Cipher Mining Inks New 10-Year HPC Deal With Fluidstack; Shares Rise 13%

Core Insights - Cipher Mining has entered a 10-year HPC hosting agreement with Fluidstack, adding 56 MW of capacity at its Barber Lake site in Texas, securing approximately $830 million in contracted revenue over the initial term [1] - The agreement could potentially increase in value to about $2.0 billion with two optional five-year extensions and approximately $9.0 billion across the broader partnership [1] Financial Performance - Cipher will deliver 39 MW of additional critical IT load, supported by the 56 MW of gross capacity [2] - Google has increased its backstop of Fluidstack's lease obligations by $333 million, totaling $1.73 billion in support [2] - Cipher plans to fund the buildout through project-related debt and approximately $118 million in additional equity contributions [2] Operational Outlook - The company anticipates strong financial performance from the Barber Lake site, forecasting a net operating income margin of 85% to 90% and project costs of $9 million to $10 million per MW [3] - The expansion is expected to strengthen Cipher's position in high-performance computing and support its growing 3.2 GW development pipeline [3] - Following strong results and outlook from Nvidia, shares of Cipher Mining increased by more than 10%, with the latest news pushing gains to 13% [3]