AI giants are making moves: Google invests $3 billion to guarantee computing power leases, acquiring a 5.4% stake in Bitcoin mining company Cipher Mining.

On September 25, 2025, Google announced that it had successfully acquired a 5.4% stake in the Bitcoin mining company Cipher Mining through a complex tripartite collaboration and a multi-billion dollar lease guarantee. At the core of this transaction is Google's commitment to guarantee AI cloud platform Fluidstack's $1.4 billion lease obligations to Cipher Mining in exchange for approximately 24 million warrants for Cipher Mining common stock. This move signifies that Google is accelerating the transformation of energy-intensive Bitcoin mining farm infrastructure into artificial intelligence (AI) Computing Power centers, with Cipher Mining's stock price soaring by 20% shortly after the announcement, highlighting the capital market's strong recognition of this mining company's transformation.

Google's Strategy: Investing in Bitcoin Mining Companies Twice in Two Months

Google's investment in Cipher Mining is no coincidence, but rather a carefully designed strategic layout in its AI computing power competition.

· Investment Structure: By guaranteeing Fluidstack's $1.4 billion lease obligations to Cipher Mining, Google acquired equity in the mining company. This model allows Google to effectively and preferentially obtain the necessary high-performance computing (HPC) resources without having to build new large data centers from scratch.

· Two actions within two months: This is Google's second investment in a Bitcoin mining company in a similar manner within just two months. Previously, in August 2025, Google acquired a 14% stake in another mining company, TeraWulf, which is transforming into AI services, through a similar partnership with Fluidstack.

· Seizing Infrastructure: This strategy highlights Google's fierce competition in the AI infrastructure sector with tech giants like Microsoft and Amazon. Google, with the help of Fluidstack as an intermediary platform, quickly integrates Bitcoin mining companies that have ready power and facilities into its own AI computing power ecosystem.

$3 Billion Major Cooperation: Cipher Mining Transforms into AI Infrastructure

As the fourth largest publicly traded Bitcoin mining company by market capitalization, Cipher Mining is rapidly transforming into an AI hosting service provider, leveraging its massive energy infrastructure.

· Core Agreement: Fluidstack has signed a computing power leasing agreement with Cipher Mining for an initial term of 10 years, valued at 3 billion dollars. If both five-year extension options in the agreement are exercised, the total contract value could reach 7 billion dollars.

· Computing Power Delivery: Cipher Mining plans to deliver 168 megawatts (MW) of computing power from its facility located in Barber Lake, Colorado City, Texas, to support AI operations. The company expects to fully deliver this portion of computing power by September 2026.

· Expansion Potential: Barber Lake Mining Farm covers an area of 587 acres and has an additional expansion potential of 500 megawatts, providing significant growth space for the long-term demand of Google and AI Computing Power.

· High Profit: This lease is expected to bring Cipher Mining a high profit margin of 80% to 85%, providing strong financial motivation for transformation.

The Survival Path of Mining Companies: From Cryptocurrency Mining to AI Computing Power Hosting

Cipher Mining's collaboration with Google is not only a milestone for the company but also represents a trend of transformation in the entire Bitcoin mining industry.

· Revenue Stability: Traditional Bitcoin mining faces rising energy costs, pressure from equipment iteration, and the risk of reduced earnings due to Bitcoin halving. In contrast, AI infrastructure provides more predictable revenue through long-term contracts.

· CEO Statement: Cipher CEO Tyler Page stated that this transaction "consolidates our momentum in high-performance computing (HPC)." The company continues to attract market attention to its large and growing sites. Additionally, Cipher is developing HPC outside of the Fluidstack protocol, maintaining a 2.4 gigawatt (GW) development pipeline.

· Market Feedback: The Capital Market has a positive attitude towards this transformation. Cipher's stock price rose by 20% shortly after the announcement of the partnership, ultimately closing with a 5% increase, and the stock has increased sevenfold since April 2025. This performance indicates that investors are rewarding those mining companies that actively transition to AI-managed operations.

· Industry Trends: Other mining companies, including Hive Digital, have also expanded their GPU and AI services and reported record revenues, proving that leveraging existing power and facility advantages for AI hosting has become a new survival and development model for mining companies.

Conclusion

Google's equity investment in Cipher Mining and its substantial lease guarantees are further evidence of how the explosive demand for artificial intelligence is reshaping traditional industries. Bitcoin mining companies have successfully found a transformative path from cryptocurrency mining to high-profit, high-stability AI infrastructure hosting, leveraging their existing energy infrastructure, sites, and technical expertise. This cooperation not only brings Cipher Mining billions of dollars in revenue assurance and significant development credibility but also marks the extension of Silicon Valley's competition for AI computing power into corners that were once focused on cryptocurrency. Mining companies are massively reshaping themselves, becoming an indispensable emerging force in the global artificial intelligence computing market.

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions with caution.