Mentioned:
Cipher Mining has just landed a new massive deal for high performance computing. And Google is backing it.
What’s happening:
- Cipher Mining (NASDAQ: CIFR) has entered into a new high performance computing co-location deal with Fluidstack AI to deliver 168 megawatts of power capacity to Fluidstack AI at Cipher Mining’s Barber Lake data centre located in Texas
By the numbers:
- Fluidstack AI will pay Cipher Mining roughly $3B USD over the next 10 years
- Google (NASDAQ: GOOG) will backstop $1.4B USD of Fluidstack AI’s lease obligations in exchange for approximately 5.4% equity ownership in Cipher Mining through warrants
Why it matters:
- This is the single largest deal for high performance computing that Cipher Mining has ever done
Going deeper:
- Cipher Mining will retain full ownership rights of the Barber Lake data centre and will be able to raise further debt and equity financing rounds to fund the development of more power capacity
The intrigue:
- This is not the first time that Google and Fluidstack AI have partnered together on a co-location agreement, previously entering into a $3.7B USD deal with TeraWulf (NASDAQ: WULF)
