Bitcoin mining company Cipher Mining surged more than 34% after revealing a modern 15-year deal with tech giant Amazon, fueling a wave of partnerships between major tech companies and cryptocurrency miners.
A 15-year, $5.5 billion lease with Amazon Web Services requires Cipher to provide turnkey space and power for AI workloads in two phases, starting in July and August next year, the Bitcoin (BTC) miner announced on Monday.
Cipher Mining also reported a significantly narrowed net loss of $3 million and an raise in adjusted earnings of $41 million in the third quarter, compared with a net loss of $46 million and an adjusted profit of $30 million in the prior quarter.
This led to the creation of Cipher shooting rose 34% from $18.65 to a high of $25.02 during Monday’s session before recovering to $22.76 by the end of the day.
Bitcoin miners are increasingly diversifying their revenue streams, shifting their energy capacity towards AI and HPC hosting services after mining rewards were halved in April 2024 to 3,125 Bitcoins, hurting overall profitability.
Cipher and Google also work
In September, Google acquired a 5.4% stake in Cipher Mining as part of a multi-year, $3 billion data center deal with AI data center company Fluidstack.
Cipher CEO Tyler Page said in a statement Monday that the company “executed a key transaction with Fluidstack and Google that firmly established our credibility in the HPC space.”
“Now, after this transaction, we are taking another big step forward by signing our first direct lease with a Tier 1 hyperscaler,” he added.
Related: US Energy Secretary Provides Faster Direct Network Access for AI and Crypto Miners
Along with the Amazon deal, Cipher also announced that it has a majority stake in a joint venture to develop a one-gigawatt AI hosting site in West Texas, known as Colchis. According to the agreement, Cipher provides the majority of financing and will acquire 95% of the share capital.
Miners and tech giants are making deals
This year, tech giants are getting more involved in Bitcoin miners. Bitcoin mining company IREN also signed a multi-year, $9.7 billion GPU cloud services deal with Microsoft on Monday.
Meanwhile, TeraWulf announced a $3.7 billion hosting deal in August with Fluidstack, backed by Google parent company Alphabet.
Warehouse: Bitcoin’s long-term security budget problem: impending crisis or FUD?
