Google Acquires 5.4% Stake in Bitcoin Miner Cipher Mining Through $3 Billion AI Hosting Deal

Google acquired a 5.4% ownership stake in Cipher Mining Corp. (NASDAQ: CIFR), a publicly traded Bitcoin mining company, through its backing of a massive $3 billion artificial intelligence hosting deal announced September 25, 2025 . The tech giant secured approximately 24 million warrants in the Texas-based crypto miner as part of a 10-year agreement that could potentially reach $7 billion in total value .

The partnership centers on a high-performance computing colocation hosting agreement between Cipher Mining and AI firm Fluidstack, with Google providing $1.4 billion in financial guarantees to backstop Fluidstack's obligations . Under the initial 10-year term, Cipher Mining will provide 168 megawatts of hosting capacity for AI workloads, generating approximately $3 billion in contract value . The deal includes options for two additional five-year extensions that could bring the total contract value to $7 billion .

Cipher Mining operates Bitcoin mining facilities across Texas and has been expanding its infrastructure to accommodate both crypto mining and AI hosting services . The company's stock initially jumped as much as 20% on news of the Google partnership before settling to a 5% gain . However, CIFR shares later dipped in premarket trading despite the significant deal announcement .

The agreement represents a strategic pivot for Cipher Mining as it diversifies beyond traditional Bitcoin mining into the rapidly growing AI infrastructure market. Google's investment provides the crypto miner with substantial guaranteed revenue while giving the search giant access to specialized computing infrastructure needed for AI applications .

Fluidstack, the AI company at the center of the three-way partnership, specializes in distributed computing solutions and will utilize Cipher Mining's facilities to provide AI hosting services. Google's financial backing ensures the deal's stability and provides additional credibility to the arrangement .

The partnership reflects broader trends in the crypto mining industry, where companies are increasingly seeking to monetize their energy infrastructure and computing capabilities beyond Bitcoin mining. Several major miners have pursued similar AI hosting deals in recent months as they look to diversify revenue streams amid Bitcoin's price volatility .

Industry observers noted that Google's direct investment in a Bitcoin mining company marks a significant development, as traditional tech giants have generally maintained distance from crypto mining operations. The deal structure allows Google to benefit from the growing AI infrastructure demand while gaining exposure to the crypto sector through its equity stake . 

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