Bitcoin Miner Cipher Mining Signs a 10-Year Deal With Google

Cipher Mining Inc., a major Bitcoin (BTC) mining company, has signed a 10-year deal with Fluidstack to provide hosting for artificial intelligence (AI) tasks. According to a blog post, this agreement secures 168 megawatts (MW) of power to support these advanced workloads. Notably, Google backs the deal with a guarantee of $1.4 billion.

Cipher to Raise $800 Million in Convertible Notes

Interestingly, this marks a significant shift for Cipher as it moves from regular cryptocurrency mining to high-performance computing and AI. Meanwhile, as part of the agreement, Google has also acquired a 5.4% equity stake in Cipher. However, Cipher still has full ownership of the project.

Additionally, Cipher announced its plans to raise $800 million through a private offering of zero-coupon convertible senior notes that will be due in 2031. The firm intends to give initial buyers a 13-day option to purchase up to an additional $120 million in notes. The funding will help the company improve its data centers while expanding the development of its other sites. 

Undoubtedly, Cipher’s move towards AI infrastructure comes as demand for AI training and capabilities rises. By using its current energy contracts and infrastructure, Cipher is in a strong position to take advantage of the fast-growing market.

Cipher Refocuses Its Funds on AI Expansion

At the beginning of the year, Cipher received $50 million in funding from SoftBank, a leading investor in the AI project Stargate. As reported by TheCoinRise, this investment changes the Bitcoin mining industry, especially as AI technology starts to connect with cryptocurrency operations.

It is also worth noting that Cipher funding comes as it works to grow and innovate. This agreement means SoftBank cannot enter competing deals or sell its interests in Cipher’s 300 MW Barber Lake Site in Texas.

For clarity, the Barber Lake Site is one of Cipher’s most significant assets and is situated in an ideal location for large-scale Bitcoin mining. The exclusivity agreement with SoftBank underscores the project’s significance to Cipher’s future success.

Pakistan Allocates 2,000 MW For Bitcoin Mining

Recall that in May, Pakistan allocated 2,000 megawatts of surplus electricity specifically for Bitcoin mining and AI data centers. The initiative is part of a national digital transformation plan led by the Pakistan Crypto Council and supported by the Ministry of Finance.

In the initial phase, the government will divert excess power toward building AI infrastructure and crypto mining facilities. The second phase will incorporate renewable energy sources into the mining process. This will help minimize environmental impact while boosting Pakistan’s role in the global digital economy.

Furthermore, the government disclosed a comprehensive package of financial incentives to draw interest from global tech investors. These include tax breaks for AI centers and an exemption from import duty for Bitcoin miners.