Synopsis: Cipher Mining’s stock soared 34% after announcing a $5.5 billion, 15‑year data‑center lease with AWS, marking its major pivot from Bitcoin mining to AI‑focused infrastructure operations.
Cipher Mining’s stock skyrocketed on Monday after the company revealed a landmark data center deal with Amazon Web Services (AWS). The 15-year, $5.5 billion lease marks the Bitcoin miner’s biggest step yet into high-performance computing (HPC) and artificial intelligence hosting. Investors didn’t hesitate the stock jumped more than 34%, hitting a record peak before cooling slightly by the close of the day.
Cipher’s new deal with AWS will provide 300 megawatts of fully equipped data center capacity at its Texas sites. The project will roll out in two phases beginning in mid-2026, extending Cipher’s presence in the growing AI infrastructure race. The company will supply space, power, and advanced cooling systems designed for heavy GPU workloads an area where the demand from tech firms keeps intensifying.
What stands out is the certainty of income. Over the 15 years, Cipher will receive fixed lease payments that generate steady, low-risk revenue streams. It’s hard not to notice how this transforms the once volatile miner into a reliable infrastructure provider. To me, that feels like a turning point the kind long-term investors seek.
Surge in Performance
Cipher’s latest quarterly results came with encouraging signs. The company reported a sharp improvement, shrinking its net loss to $3 million while boosting adjusted earnings to $41 million. Revenue jumped to $72 million, a 65% increase from the previous quarter. As CEO Tyler Page put it, this quarter was “truly transformative,” highlighting the two major HPC transactions and steady pipeline growth.
Cipher isn’t alone in expanding beyond Bitcoin mining. After the April 2024 halving cut mining rewards, many miners started pivoting toward AI hosting. This shift is pragmatic, not just opportunistic. Miners already control high-capacity power infrastructure exactly what hyperscalers like Amazon, Google, and Microsoft now require. It’s fascinating to see how quickly energy efficiency turned into the new competitive currency for both miners and AI operators.
Big Tech
Earlier this year, Cipher secured a $3 billion deal with Fluidstack and Google, under which Google also acquired a 5.4% stake. That partnership added around $3 billion to Cipher’s lease backlog, bringing the company’s total contract pipeline to $8.5 billion, including the latest AWS agreement. The confidence from both Amazon and Google speaks volumes about Cipher’s credibility in the HPC segment.
Moreover, Cipher is developing a massive one-gigawatt site called “Colchis” in West Texas, where it holds a 95% ownership stake. Once operational, this facility could become a cornerstone for new hyperscaler contracts. If executed as planned, it may be one of the largest AI-related data centers in North America.
Miner-Tech Alliances
Cipher’s announcement came on the same day fellow miner IREN signed a $9.7 billion GPU cloud deal with Microsoft. Combined, the two agreements added roughly $15 billion in new AI hosting commitments within 24 hours a remarkable sign of how rapidly the sector is evolving. In August, TeraWulf also entered a $3.7 billion contract backed by Google’s parent company, Alphabet.
As a market observer, this sudden wave of synergy between miners and tech companies feels like the early days of a broader industrial shift. Ten months ago, Bitcoin miners relied almost entirely on cryptocurrency prices. Now, they’re becoming essential energy-to-compute providers for the AI revolution. Cipher’s valuation already reflects the excitement its market value now stands around $7.3 billion, supported by strong lease commitments and predictable cash flows.
Looking ahead, execution remains key. Delays in Texas grid connections or construction could test the company’s progress. Still, the AWS deal demonstrates that Cipher Mining has moved from crypto speculation to tech infrastructure leadership. Investors appear to agree yesterday’s miner is quickly becoming tomorrow’s AI landlord.
Written By Fazal Ul Vahab C H