Cipher Mining Inc (NASDAQ:CIFR) shares are trading higher on Monday after the company reported third-quarter results and announced it signed a 15-year lease agreement with Amazon Web Services.
- CIFR stock is showing exceptional strength. See the market dynamics here.
What To Know: Cipher Mining reported third-quarter revenue of $71.71 million, missing analyst estimates of $78.6 million, according to Benzinga Pro. The company reported adjusted earnings of 10 cents per share, beating estimates for a loss of 2 cents per share.
“The third quarter was truly transformative for Cipher. We executed a pivotal transaction with Fluidstack and Google, which firmly established our credibility in the HPC space. We are now following that transaction with another major step forward by signing our first direct lease with a Tier 1 hyperscaler,” said Tyler Page, CEO of Cipher Mining.
In connection with the company’s third-quarter financial results, Cipher announced that it entered into a 15-year lease agreement valued at approximately $5.5 billion with Amazon.com Inc (NASDAQ:AMZN) Web Services (AWS) to support the company’s AI workloads.
Cipher said it will deliver 300 megawatts of capacity in 2026, including both air and liquid cooling to the racks. The capacity will be delivered in two phases, expected to begin in July and be completed in the fourth quarter of 2026.
Cipher also announced a new joint entity with American Electric Power to develop a 1 gigawatt site in West Texas. The “Colchis” site will be majority financed by Cipher, which is expected to result in approximately 95% equity ownership in future leases.
American Electric Power will construct the necessary dual interconnection facility for a targeted energization in 2028. Construction of the interconnection facility will proceed upon ERCOT’s final review and approval.
“As the industry evolves rapidly and validates our thesis that Tier 1 hyperscalers would turn to Cipher and to non-traditional areas in Texas, we’re more confident than ever that Cipher is among the best-positioned companies in the world to seize additional opportunities created by the growing power shortfall,” Page said.
Cipher Mining executives are currently discussing Monday’s business update on a conference call that started at 8 a.m. ET.
CIFR Price Action: Cipher Mining shares were up 23.03% at $22.95 at the time of publication on Monday, according to Benzinga Pro.
Read Next:
Image created using artificial intelligence via DALL-E.
