BlockBeats News, September 25th, according to Bloomberg, Google is set to acquire a 5.4% stake in the crypto mining firm Cipher Mining Inc. Cipher, in a statement, disclosed that Google has agreed to guarantee a $1.4 billion obligation in the contract between Fluidstack and Cipher. Fluidstack and Cipher entered into an initial 10-year agreement to lease data center capacity, with approximately $3 billion in revenue.
Cipher’s data centers were previously used for cryptocurrency mining. The company stated that it will leverage the support agreement from Google to borrow funds for expansion. Cipher mentioned that the contract includes two potential five-year extensions, which would add an additional $4 billion in revenue. Cipher’s stock price surged 24% in pre-market trading on the New York Stock Exchange. On Wednesday, the stock closed at $14.14, more than doubling since the beginning of this year.
This is similar to Google’s deal with another cryptocurrency mining data center operator, TeraWulf Inc., where Google acquired warrants for up to a 14% stake in the company. In that transaction, Google also agreed to support a ten-year Fluidstack contract to purchase its capacity.
