The tech giant will receive warrants to buy roughly 24 million shares of Cipher Mining stock through a complex three-way partnership that highlights the growing shift from crypto mining to AI computing.
The deal involves AI cloud platform Fluidstack, which signed a 10-year agreement with Cipher Mining worth $3 billion initially. Google backs this arrangement by guaranteeing $1.4 billion of Fluidstack’s financial obligations, earning the equity stake in return.
Cipher Mining represents the fourth-largest public Bitcoin miner by market value. The company plans to deliver 168 megawatts of computing power from its Texas facility to support AI operations. This marks a significant shift away from traditional cryptocurrency mining toward high-performance computing services.
The transformation reflects broader industry trends. Bitcoin mining companies face mounting pressure from rising energy costs, equipment expenses, and Bitcoin’s periodic reward cuts. Many miners now see AI infrastructure as a more stable revenue source.
Tyler Page, Cipher’s CEO, said the deal “reinforces our HPC momentum as we continue to attract attention for our large and growing pipeline of sites.” The company maintains a separate 2.4 gigawatt pipeline for additional high-performance computing development beyond this Fluidstack agreement.
This investment represents Google’s second major stake in a Bitcoin mining company within two months. In August 2025, the company acquired a 14% stake in TeraWulf, another miner transitioning to AI services, through a similar Fluidstack partnership.
Google’s approach allows the tech giant to access computing capacity without building new data centers from scratch. The company covers Fluidstack’s lease obligations, gains equity in hardware providers, and secures priority access to computing resources.
The strategy comes as Google competes intensely with Microsoft, Amazon, and other tech companies for AI infrastructure. Google’s parent company Alphabet currently holds a market value just under $3 trillion, trailing only Nvidia, Microsoft, and Apple in total worth.
The Cipher Mining deal could reach $7 billion in total value if two five-year extension options get exercised. The initial 10-year term covers $3 billion in contracted revenue, with expected profit margins between 80% and 85%.
Source:@CipherInc
Cipher’s stock jumped 20% immediately after the announcement but later settled to a 5% gain. The company’s shares have risen seven-fold since April 2025 as investors reward miners pursuing AI pivots.
Project costs are estimated at $9 to $11 million per megawatt of critical computing load. Cipher expects to deliver the full 168 megawatts by September 2026 at its Barber Lake site in Colorado City, Texas. The facility spans 587 acres with potential for 500 megawatts of additional capacity expansion.
The Google-Cipher partnership illustrates how crypto mining companies are reinventing themselves. Traditional Bitcoin mining requires constant hardware upgrades and faces unpredictable profitability based on Bitcoin’s price swings.
AI infrastructure offers more predictable revenue through long-term contracts. Companies can repurpose existing facilities, power infrastructure, and technical expertise for artificial intelligence applications instead of cryptocurrency mining.
Other miners including Hive Digital have also expanded into GPU and AI services, reporting record revenue in recent quarters. Mining stocks have outperformed Bitcoin itself as investors reward companies making this transition.
Cipher Mining plans to fund expansion through an additional $800 million convertible bond offering. The company announced this separate financing alongside the Google partnership to support broader data center development.
Google’s investments in former Bitcoin miners signal how AI infrastructure demand reshapes entire industries. Tech companies need massive computing power for artificial intelligence applications, creating opportunities for companies with existing facilities and power capacity.
The partnerships also highlight Fluidstack’s role as an intermediary, connecting tech giants with infrastructure providers. The AI cloud platform helps coordinate these complex deals involving multiple parties and billions in commitments.
For Cipher Mining, the Google backing provides financial stability and credibility as the company transforms from crypto mining to AI infrastructure. The deal positions Cipher as a major player in the rapidly growing artificial intelligence computing market.
Google’s stake in Cipher Mining shows how artificial intelligence is reshaping unexpected corners of the tech world. Bitcoin miners are becoming AI infrastructure providers, backed by some of the world’s largest technology companies. This transformation may represent just the beginning of AI’s impact on traditional industries.
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