Google Secures Stake in Cipher Mining with $1.4 Billion Contract Guarantee

According to Foresight News, Google has acquired the right to purchase a 5.4% stake in cryptocurrency mining company Cipher Mining Inc. Cipher announced that Google agreed to guarantee $1.4 billion in obligations under a contract signed between Fluidstack and Cipher. The initial 10-year agreement between Fluidstack and Cipher involves leasing data center capacity, generating approximately $3 billion in revenue. Cipher's data centers have previously been used for cryptocurrency mining. The company plans to use Google's support agreement to secure funding for expansion. The contract includes two potential five-year extensions, which could add an additional $4 billion in revenue. Cipher's stock surged by 24% in pre-market trading on the New York Stock Exchange, closing at $14.14 on Wednesday, more than doubling its value this year. This deal is similar to Google's agreement with another cryptocurrency mining data center operator, TeraWulf Inc., where Google obtained warrants to acquire up to 14% of the company. In that transaction, Google also agreed to support a ten-year Fluidstack contract to purchase its capacity.