The hosting and Bitcoin mining company Cipher Mining $CIFR (+14,35%) is increasingly focusing on high-performance computing (HPC) and artificial intelligence (AI). To this end, the company has signed a contract worth 3 billion US dollars with AI cloud provider Fluidstack. The Alphabet subsidiary Google is taking on almost half of the sum $GOOGL (-1,42%) and in return receives warrants to acquire around 5.4% of Cipher's shares.
On September 25, Cipher announced a long-term agreement with the AI cloud provider Fluidstack in a press release:
- Cipher will provide 168 megawatts (MW) of computing power at the Barber Lake site in Colorado City, Texas.
- The contract runs for 10 years and is worth around 3 billion US dollars.
- The plant has a gross capacity of 244 MW and can be expanded to 500 MW.
- Two five-year extension options could increase the contract value to up to USD 7 billion.
The contract is financially secured by Google. The Group is assuming guarantees for Fluidstack's payment obligations amounting to 1.4 billion US dollars, thus covering almost half of the rental obligations to Cipher.
In return, Google will receive options on around 24 million Cipher shares, which corresponds to around 5.4% of the total company shares. Under certain conditions, adjustments to the conditions or a cash settlement payment are also possible.
