Bitcoin miner-turned data center Cipher (NASDAQ: CIFR) has inked a 10-year, 56 MW expansion in its Fluidstack contract, adding about $830 million in contracted revenue and lifting its total contracted revenue with Fluidstack to roughly $3.8 billion over a ten year term.
In the new deal, Google expanded its backstop of Fluidstack’s obligations by $333 million, bringing the total to $1.73 billion.
The company also proposed a $333 million secured note offering at 7.125% due 2030, backed by its Barber Lake facility.
The firm called the new contract an expansion of its existing agreement with Fluidstack. The company said the 56 MW of critical IT load will be delivered at the Barber Lake site in Colorado City, Texas, with about 39 MW expected online by January 2027. The contract includes the same structure used in the September deal: project assets held at the site level, equity ownership by Cipher, a lockbox account structure tied to Fluidstack payments, and a Google backstop prior to completion of construction.
The company intends to issue $333 million of secured notes guaranteed by the backstopped revenue. The company said the notes will sit senior to equity distributions and are secured by the site-level cash flows tied to Fluidstack’s obligations.
The new contract follows the company’s earlier 168 MW hosting agreement signed in September with Fluidstack, which Cipher said carried roughly $3 billion in contracted revenue over 10 years. Google backstopped $1.4 billion of that deal and received warrants tied to approximately 24 million CIFR shares.
Cipher shares are down 26.57% over the past month during a broader market selloff but were up 10% today following the news.
Equity research firm JonesResearch reiterated its Hold rating in an October report based on limited upside for Cipher following the earlier Fluidstack deal, citing uncertainty on deployment timing, geography, and future contract visibility. The firm highlighted Google’s backstop as supportive of financing structures but noted limited clarity on additional sites.
On November 14, crypto-focused Hedge Fund Alpine Fox disclosed a position in Cipher as its largest position at 5 million shares, gaining 20% within a week.
