"Google has helped strike another deal with a Bitcoin miner. On Thursday, Cipher Mining announced that it was leasing a data warehouse it owns in Colorado City, Texas, to an AI computing startup. The Bitcoin miner projects the contract to net the company $3 billion over its initial 10-year term and $7 billion if two five-year extensions are exercised. Cipher Mining struck the deal with Fluidstack, an AI computing startup based in the U.K."
"Under the deal, Cipher Mining will repurpose its Bitcoin mining data center in Texas for AI services-and potentially expand its existing campus to accommodate increased demand. This isn't the first deal Google has helped broker a deal with a Bitcoin miner. In August, TeraWulf announced that it had struck a $3.7 billion deal to lease out a data center it owns in western New York to Fluidstack. Google agreed to backstop $1.8 billion of the deal and received 8% in TeraWulf equity."
Cipher Mining leased a Colorado City, Texas data warehouse to Fluidstack and projects $3 billion in revenue over the initial 10-year term and $7 billion with two five-year extensions. Google agreed to backstop $1.4 billion of Fluidstack's lease obligations and will receive 5.4% equity in Cipher Mining. Cipher Mining will repurpose the Bitcoin mining data center for AI services and may expand its campus to meet demand. A prior, similar arrangement involved TeraWulf leasing a New York data center to Fluidstack for $3.7 billion with Google backstopping $1.8 billion for an 8% stake. AI developers are increasingly sourcing computing capacity from Bitcoin miners.
Read at Fortune Crypto
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