Cipher Mining Secures Major AWS Lease
Cipher Mining Inc., a player in both Bitcoin mining and high-performance computing (HPC), has made a significant stride by securing a 15-year lease with Amazon Web Services (AWS) worth $5.5 billion. This agreement aims to provide 300 megawatts of computing capacity for artificial intelligence workloads, marking one of Cipher’s most substantial initiatives in the realm of HPC.
Third-Quarter Business Update
In its third-quarter business update for 2025, the Nasdaq-listed company announced revenue of $72 million, accompanied by non-GAAP adjusted earnings of $41 million. Cipher’s CEO, Tyler Page, dubbed this quarter as “truly transformative,” emphasizing the strategic importance of the AWS lease, characterizing it as their “first direct lease with a Tier 1 hyperscaler.” He pointed out that the AWS contract follows their successful dealings with Fluidstack and Google, which have enhanced their reputation in the HPC sector.
Data Center Operations and Joint Ventures
Under the terms of this contract, Cipher Mining intends to roll out its data center operations in two phases, starting in July 2026 and concluding by the end of the fourth quarter of that year, with rental payments commencing in August 2026. This facility will be equipped with both air and liquid cooling systems to handle the anticipated AI workload demands.
Beyond the AWS agreement, Cipher Mining also revealed its majority stake in a new joint venture for the “Colchis” project, a proposed 1-gigawatt energy site located in West Texas. Cipher is expected to finance most of this venture, leading to an ownership stake of about 95% under customary development and lease frameworks. This site will be developed in conjunction with American Electric Power (AEP), which will facilitate the necessary interconnection, targeting energy generation by 2028. The Colchis site, spanning 620 acres and situated adjacent to an existing substation, meets crucial specifications for large-scale data center development.
Future Prospects
Overall, Cipher Mining now boasts an impressive pipeline of 3.2 gigawatts in feasible capacity, with AI hosting agreements estimated to yield $8.5 billion in lease revenues. Despite reporting a net loss of $3 million for the quarter, or $0.01 per share, the firm’s adjusted earnings stood at $41 million, equating to $0.10 per diluted share, underscoring their strategic growth amid ongoing investments. The company also successfully completed a $1.3 billion offering of convertible notes in the same timeframe.
