Cipher Mining (CIFR) announced a new 10-year HPC hosting agreement with Fluidstack that adds 56 MW of additional capacity at its Barber Lake site in Texas. The agreement secures approximately $830 million in contracted revenue over the initial term and extends Fluidstack’s lease to the 300 MW available at the site.
With two optional five-year extensions, the value of the deal could reach approximately $2.0 billion for this expansion and approximately $9.0 billion for the entire broader partnership.
Cipher will provide 39 MW of additional critical IT load, supported by 56 MW of raw capacity. Google increased its support for Fluidstack’s lease obligations by $333 million, bringing its total support to $1.73 billion. Cipher plans to finance construction through project-related debt and approximately $118 million in additional equity contributions.
The company expects strong financial performance from the Barber Lake site, forecasting a net operating margin of 85 to 90 percent and project costs of $9 to $10 million per MW. Cipher says this expansion strengthens its position in high-performance computing and supports its growing 3.2 GW development pipeline.
Cipher Mining shares were already up more than 10% following strong results and prospects from AI barometer Nvidia on Wednesday evening. This latest news pushed those gains to 13%.
