Cipher Mining (CIFR) jumped 19% on Monday after inking a $5.5 billion lease with Amazon Net Companies (AWS), diving deeper into hot-button synthetic intelligence (AI) infrastructure.
The 15-year settlement will see Cipher provide 300 megawatts (MW) of energy capability to AWS by the tip of 2026, with the primary section beginning in July, based on an organization press launch. The ability contains each air-cooled and water-cooled racks, a key function for the kind of excessive efficiency computing (HPC) required for AI fashions.
Cipher additionally introduced that it has acquired majority management of a brand new three way partnership to construct a 1 GW web site in West Texas. The ability, named Colchis, is situated on 620 acres close to an American Energy substation and has a direct join settlement with AEP. Based on the corporate, building is focused for completion in 2028.
These developments spotlight an additional shift within the position of crypto mining firms, that are more and more getting used to offer the facility and infrastructure wanted by massive tech firms with lofty AI ambitions. Bitcoin miners already handle massive power contracts and computing infrastructure, and at the moment are in excessive demand from hyperscalers like AWS and Google.
IREN (IREN), one other Bitcoin miner that has pivoted to AI computing, introduced a $9.7 billion cloud computing take care of Microsoft on Monday, sending its inventory value up greater than 20%.
crypto earnings
Cipher on Monday reported third-quarter income of $72 million and adjusted revenue of $41 million. The AWS lease and beforehand introduced $3 billion offers with Fluidstack and Google convey the corporate’s complete AI internet hosting contracts to about $8.5 billion.
The corporate mentioned the pipeline at the moment contains 3.2 gigawatts (GW) of web site capability.
“Because the business quickly evolves and our speculation that Tier 1 hyperscalers will look to Cipher and non-traditional areas of Texas is examined, we’re extra assured than ever that Cipher is without doubt one of the best-positioned firms on this planet to grab the extra alternatives created by rising energy shortages,” CEO Tyler Web page mentioned in an announcement.
