Overview

• Cipher signed a 10-year colocation agreement with Fluidstack to deliver 168 MW of IT load at its Barber Lake site in Texas by September 2026, with two five-year extensions that could lift total contracted revenue from about $3 billion to roughly $7 billion.
• Google will guarantee $1.4 billion of Fluidstack’s lease obligations and receive warrants for about 24 million Cipher shares, equal to approximately a 5.4% pro forma stake.
• Cipher will retain full ownership of the project and launched a private offering of $800 million in convertible senior notes due 2031, with an option for an additional $120 million, to fund construction and its broader 2.4 GW HPC pipeline.
• Shares spiked as much as roughly 20% to 24% on the announcement before sliding later, with reports of a drop of about 17% as investors weighed dilution from the convertible notes.
• The project highlights bitcoin miners’ pivot to AI/HPC infrastructure and follows a similar Google–Fluidstack arrangement with TeraWulf; coverage notes reported gross site capacity of about 244 MW with potential expansion toward 500 MW and estimated site NOI margins of 80% to 85%.