Tech giant Google relies on Bitcoin mining: New dimensions through participation in Cipher

Google takes another step into the world of Bitcoin mining and secures a significant stake of more than 5 percent in the Nasdaq-listed mining company Cipher through a deal. This strategic investment will further propel the company into the dynamic and energy-intensive world of Bitcoin mining. Cipher announced on Thursday the signing of a ten-year high-performance data center colocation agreement with the renowned AI cloud platform Fluidstack. As part of this agreement, Cipher will provide a critical IT load of 168 MW at its Barber Lake location in Colorado City, Texas, supported by a maximum capacity of 244 MW. Google is providing a guarantee of USD 1.4 billion for Fluidstack’s leasing obligations to strengthen project-related financing. In return, Google will have the right to acquire approximately 24 million shares of Cipher, representing a proforma equity interest of 5.4 percent. Tyler Page, CEO of Cipher, expressed enthusiasm about collaborating with Fluidstack and Google’s investment in Cipher. This groundbreaking transaction underscores the momentum in the field of high-performance data centers and will help strengthen Cipher’s position in this rapidly growing sector. However, on Thursday, Cipher's (CIFR) stock fell by 9 percent to USD 12.81 per share, according to YahooFinance data. Google itself initially did not respond to requests from Decrypt for comment. The Bitcoin mining industry is increasingly intertwined with data center applications for high-performance computing (HPC), as both the cryptocurrency mining and AI sectors bring enormous energy demands. If the price of Bitcoin falls and mining new digital coins does not generate enough revenue, some miners increasingly turn their infrastructure to AI demand. Recently, Bitcoin miner TeraWulf also announced that Google is providing an additional USD 1.4 billion guarantee to support project-related financing, bringing the total investment to USD 3.2 billion. In return, Google would have the right to acquire shares of the sustainable Bitcoin miner.