U.S. Bitcoin miner Cipher Mining has signed a 15-year, $5.5 billion lease agreement with Amazon Web Services to provide 300 megawatts of artificial intelligence computing capacity, signaling a broader industry shift by cryptocurrency firms into AI infrastructure.
The deal, announced Monday, sent Cipher’s stock soaring by nearly 30% to $24 at market opening. This significant increase reflects market enthusiasm for the company’s diversification.
Cipher had previously secured a $3 billion, 10-year hosting agreement with Fluidstack, an AI cloud company, backed by Google, for AI infrastructure. Google’s involvement included supporting $1.4 billion in Fluidstack’s lease obligations and obtaining warrants for a 5.4% equity stake in Cipher.
The trend of Bitcoin miners transitioning to AI infrastructure providers extends beyond Cipher. Another public Bitcoin miner, IREN, also announced a separate $9.7 billion deal with Microsoft for AI infrastructure on the same day, driving its shares up 20%.
These agreements highlight how companies originally focused on cryptocurrency mining are leveraging their expertise in large-scale data centers and power management. They are now meeting the explosive demand for AI computing infrastructure from major technology firms like Amazon and Microsoft.
Cipher’s contract with AWS is set to commence delivery in July 2026, with full capacity expected by the fourth quarter of that year. Payments will begin in August 2026.
The infrastructure will include air and liquid-cooled racks specifically designed for the high-performance computing required by AI models.
Cipher CEO Tyler Page emphasized the company’s strong position in capitalizing on opportunities created by the growing energy shortage for AI. He stated that the industry’s rapid evolution validates their thesis that premier hyperscalers would turn to companies like Cipher.
With the AWS deal, Cipher’s total portfolio of AI hosting contracts now stands at $8.5 billion in total lease payments. The company operates extensive facilities, primarily in Texas, and is developing a 1-gigawatt data center site in West Texas.
Cipher reported $72 million in revenue and a $3 million GAAP net loss in its third-quarter 2025 update. The company maintained a solid liquidity position with $1.2 billion in cash and equivalents as of September 30.
The company previously increased its private offering of convertible senior notes to $1.1 billion. This funding was intended to help finance its Barber Lake facility in Texas, where it will host equipment under the Fluidstack agreement.