TLDR
- Cipher Mining signed its first AI hosting deal with Fluidstack/Google for 168MW at Barber Lake facility worth $3 billion over 10 years
- Company raised $1.1 billion through zero-coupon convertible notes, avoiding equity dilution at Barber Lake
- Canaccord raised price target from $12 to $16 while KBW increased target from $6.50 to $13
- Google received 5.4% pro forma equity ownership and warrants for approximately 24 million shares
- Deal leaves remaining capacity at Barber Lake available for future AI contracts
Cipher Mining just pulled off what brokers are calling one of the most important weeks in company history. The bitcoin miner announced its first AI hosting agreement and completed a massive debt offering.
The company signed a deal with Fluidstack for 168MW of computing power at its Barber Lake facility. Google backs Fluidstack and will support the project with $1.4 billion in financing.
The 10-year agreement brings in approximately $3 billion in contracted revenue. This marks Cipher’s official entry into the AI infrastructure space.
Convertible Notes Provide Financial Flexibility
Cipher raised $1.1 billion through convertible senior notes due in 2031. The notes carry a zero percent coupon rate, giving the company unusually cheap capital.
The offering was increased from the initially planned $800 million. Initial purchasers have an option to buy an additional $200 million in notes.
This financing structure allows Cipher to retain 100% ownership of Barber Lake. Management had previously suggested they might sell a stake in the project to reduce debt.
Google acquired warrants to purchase roughly 24 million Cipher shares as part of the arrangement. This gives Google a 5.4% pro forma equity ownership stake in the company.
Analysts Raise Price Targets
Canaccord Genuity increased its price target to $16 from $12 while maintaining a buy rating. The broker highlighted how the deal validates demand in the large-scale AI compute market.
Keefe, Bruyette & Woods raised their target to $13 from $6.50 with an outperform rating. They called Cipher a legitimate player in the evolving AI data center space.
Both firms noted the company’s stronger position for future capital raising. Cipher’s share price gains over recent months provided better currency for fundraising.
Room for More AI Deals
The Fluidstack agreement doesn’t cover Cipher’s entire Barber Lake capacity. This leaves room for additional AI hosting contracts at the facility.
KBW found it unusual that Fluidstack didn’t secure all available capacity or negotiate expansion options. The partial agreement suggests other opportunities remain.
Cipher operates a 2.6 gigawatt development pipeline beyond Barber Lake. Other energized sites like Odessa and the ramping Black Pearl could also attract AI co-location deals.
The company joins other bitcoin miners pivoting to AI infrastructure. This trend reflects the growing demand for computing power in artificial intelligence applications.
Cipher’s stock rose 1.2% in early trading following the analyst upgrades, reaching around $11.60 per share. The recent convertible note offering was priced and settled in September 2025.
