Cipher Mining (CIFR) Stock: Company Signs $5.5 Billion Amazon Web Services Lease Agreement

TLDR

• Cipher Mining signed a $5.5 billion, 15-year lease agreement with Amazon Web Services to provide space and power for AI workloads
• The deal includes 300 megawatts of capacity to be delivered in two phases throughout 2026, with both air and liquid cooling capabilities
• Cipher is forming a joint venture to develop a 1-gigawatt site called “Colchis” in West Texas, where it will hold approximately 95% equity ownership
• Combined with existing agreements with Fluidstack and Google, Cipher’s AI hosting contracts now total approximately $8.5 billion in lease payments
• The company completed a $1.3 billion convertible note offering and reported Q3 adjusted earnings of $41 million

Cipher Mining stock jumped 15% on Monday following news of a massive new contract. The company announced a $5.5 billion, 15-year lease agreement with Amazon Web Services.

The deal centers on providing turnkey space and power for AI workloads. This marks a major shift for the company, which has been transitioning from cryptocurrency mining to AI infrastructure hosting.

Under the terms of the agreement, Cipher will deliver 300 megawatts of capacity in 2026. The buildout includes both air and liquid cooling capabilities to handle high-performance computing demands.

Cipher Mining Inc., CIFR

The capacity rollout is planned in two phases. The first phase is expected to begin in July 2026, with the second completing in the fourth quarter of 2026.

Rent payments from AWS will start in August 2026. This provides Cipher with a clear revenue timeline for the coming years.

Texas Development Project

Beyond the AWS lease, Cipher announced plans for a joint venture development. The company is forming a new entity to build a 1-gigawatt site in West Texas called “Colchis.”

Cipher will provide the majority of financing for this project. This financial commitment translates to approximately 95% equity ownership in the venture.

The ownership structure assumes standard lease and development terms in a future high-performance computing lease. The Colchis site represents one of the largest planned AI infrastructure projects in the region.

The AWS deal isn’t Cipher’s first move into AI hosting. The company previously executed a 10-year AI hosting agreement with Fluidstack and Google.

Combined with the new AWS lease, these contracts represent approximately $8.5 billion in lease payments. This gives Cipher a substantial revenue backlog stretching more than a decade.

Financial Performance and Capital Position

Cipher reported its third quarter 2025 results alongside the AWS announcement. The company posted a net loss of $3 million, or $0.01 per share.

On an adjusted basis, the company reported earnings of $41 million. That translates to $0.10 per diluted share.

The company recently completed a $1.3 billion convertible note offering. This capital raise provides funding for its infrastructure buildout plans.

Cipher maintains a pipeline of 3.2 gigawatts of site capacity. The pipeline positions the company to pursue additional hosting contracts as demand for AI infrastructure grows.

The 300 megawatts committed to AWS represents about 9% of Cipher’s total pipeline capacity. This leaves room for future deals with other hyperscale cloud providers or AI companies.

The AWS agreement includes both air-cooled and liquid-cooled infrastructure. Liquid cooling has become increasingly important for AI chips that generate more heat than traditional data center equipment.

Cipher’s stock reaction reflects investor enthusiasm for the AI infrastructure buildout. The 15% gain on Monday came as the broader market showed mixed results.

The post Cipher Mining (CIFR) Stock: Company Signs $5.5 Billion Amazon Web Services Lease Agreement appeared first on Blockonomi.