Cipher Mining (NASDAQ: CIFR) shares experienced a surge, climbing as high as 19% before settling around a 16% increase in pre-market trading on Monday, following the announcement of a monumental $5.5 billion data center lease agreement with Amazon Web Services (AWS). This 15-year contract marks a significant move for Cipher Mining, solidifying its position in the burgeoning field of high-performance computing (HPC) and artificial intelligence (AI) infrastructure, moving beyond its roots in Bitcoin mining.
Under the terms of the agreement, Cipher Mining will provide AWS with 300 megawatts (MW) of data center capacity, equipped with both air and liquid-cooled infrastructure, dedicated to supporting AI workloads. The project is slated to commence in July 2026, with completion expected by the fourth quarter of the same year. Lease payments from AWS will begin in August 2026. The facility is Cipher's Barber Lake facility.
This landmark deal follows Cipher Mining's previous partnerships with Fluidstack and Google, bringing the company's total AI hosting contracts to approximately $8.5 billion in lease commitments.
In addition to the AWS agreement, Cipher Mining unveiled plans for a new 1-gigawatt (GW) data center development in West Texas, named "Colchis". Cipher Mining anticipates holding a 95% equity ownership in the project. The 620-acre site, located adjacent to an existing substation, has a fully executed 1-GW Direct Connect Agreement with American Electric Power (AEP), which will construct a dual interconnection facility targeted for energization in 2028.
The announcements coincided with the release of Cipher Mining's third-quarter financial results for 2025. The company reported revenue of $72 million and a net loss of $3 million, or $0.01 per share. Adjusted earnings reached $41 million, or $0.10 per diluted share. Cipher Mining also highlighted its strong financial position, with $1.2 billion in cash and cash equivalents as of September 30, 2025, a significant increase from $5.6 million at the end of 2024. Total assets rose to $2.84 billion from $855 million, due to note offering and Bitcoin holdings. Total liabilities increased to $2.06 billion from $173 million, following new financing and lease deals.
To support its ongoing expansion in the data center space and maintain operational flexibility, Cipher Mining completed a $1.3 billion convertible note offering during the third quarter.
Analysts have responded positively to the AWS deal and Cipher Mining's overall strategic shift, revising their price targets for the company and citing its strengthened balance sheet and the projected revenue from the AWS contract as key factors. The agreement highlights Cipher Mining's transition from a traditional digital asset miner to a key infrastructure provider for high-performance computing and AI. By securing a long-term contract with a leading hyperscaler like AWS, Cipher Mining gains predictable revenue streams and solidifies its position as a major player in the AI infrastructure space.
Notably, another Bitcoin miner, IREN, also experienced a surge in pre-market trading on Monday, following the announcement of a $9.7 billion hardware contract with Microsoft.
