Cipher Mining (CIFR) Stock: Bitcoin Miner Surges 34% on $5.5 Billion Amazon Data Center Deal

TLDR

• Cipher Mining stock jumped 34% on Monday after announcing a 15-year, $5.5 billion data center lease agreement with Amazon Web Services starting in 2026.
• The deal requires Cipher to provide turnkey space and power for AI workloads in two phases beginning July and August 2026.
• Cipher reported a narrowed Q3 net loss of $3 million and adjusted earnings of $41 million, despite missing analyst estimates for revenue and earnings per share.
• The company secured a 95% stake in a joint venture for a one-gigawatt AI hosting site in West Texas called Colchis.
• Fellow Bitcoin miner IREN signed a similar $9.7 billion multi-year GPU cloud services contract with Microsoft on the same day.

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Cipher Mining stock rocketed from $18.65 to a peak of $25.02 during Monday trading before closing at $22.76. The jump came after the Bitcoin mining company announced a massive 15-year lease agreement with Amazon Web Services.

Cipher Mining Inc., CIFR

The AWS deal is valued at $5.5 billion. Under the agreement, Cipher will provide turnkey space and power for AI workloads.

The service launches in two phases starting July and August 2026. The first rent payment is due in August next year.

Cipher reported third-quarter results on the same day. The company posted a net loss of $3 million for Q3.

That represents a major improvement from the previous quarter’s $46 million net loss. Adjusted earnings rose to $41 million from $30 million in Q2.

Bitcoin mining revenue nearly tripled year over year. Revenue climbed from $24.1 million to $71.7 million.

However, Cipher missed Wall Street expectations. Analysts had projected revenue of $76.5 million and earnings of $0.11 per share.

Expanding Beyond Bitcoin Mining

The AWS agreement marks Cipher’s second major tech partnership this year. In September, Google acquired a 5.4% stake in the company.

That deal was part of a $3 billion, multi-year data center agreement with AI data center firm Fluidstack. CEO Tyler Page said the Fluidstack transaction established the company’s credibility in high-performance computing.

Once operational, AI data center hosting will become the primary revenue source. Bitcoin mining will shift to a secondary operation.

Cipher also announced a new joint venture on Monday. The company secured a 95% equity stake in Colchis.

This project will develop a one-gigawatt AI hosting site in West Texas. Cipher will provide most of the financing for the venture.

Tech Giants Partner with Crypto Miners

The partnership trend extends beyond Cipher. IREN signed a multi-year GPU cloud services contract with Microsoft worth $9.7 billion on Monday.

TeraWulf announced a $3.7 billion hosting agreement with Fluidstack in August. That deal also involved backing from Alphabet, Google’s parent company.

Bitcoin miners have been diversifying their business models. The April 2024 halving event cut mining rewards to 3.125 Bitcoin per block.

This reduction has pressured profitability across the industry. Miners are redirecting their energy capacity toward AI and high-performance computing hosting services.

These deals offer more predictable revenue streams. Bitcoin mining income fluctuates with crypto market conditions.

AI hosting agreements provide stable, long-term contracts with major technology companies. The computing infrastructure that powers Bitcoin mining also works for AI applications.

Cipher’s stock has traded in a 52-week range of $1.86 to $25.11. Monday’s closing price of $22.76 sits near the top of that range.

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