Google will acquire the right to purchase a 5.4% stake in the cryptocurrency mining company Cipher Mining

ChainCatcher news, according to Bloomberg, as part of a multi-year data center agreement with AI computing startup Fluidstack, Alphabet's Google will gain the right to purchase a 5.4% stake in cryptocurrency mining company Cipher Mining Inc.

Data center operator Cipher stated that Google agreed to assume $1.4 billion in debt guarantees for Fluidstack under the contract signed with Cipher. Fluidstack has reached an initial 10-year agreement with Cipher to lease its computing power, which is expected to generate approximately $3 billion in revenue. This is the second such deal between Google and Fluidstack in the past two months, highlighting the strong demand for computing resources to support AI services.

Cipher's data centers were previously used for cryptocurrency mining, and the company stated it would leverage Google's guarantee agreement to help secure loans for expansion. Cipher noted that the contract also includes two potential five-year renewal options, which could add an additional $4 billion in revenue. In pre-market trading before the opening of the New York Stock Exchange, Cipher's stock, based in New York, surged by 24%. The stock closed at $14.14 on Wednesday, more than doubling in value this year.