Cipher Mining Surges 34% After Billion-Dollar Deal with Amazon

Cipher Mining Surges 34% After Billion-Dollar Deal With Amazon

4 November 2025 at 17: 23

Reading time: 2 minutes

Recent developments surrounding Cipher Mining have caused a stir in the crypto market. The company, which focuses on Bitcoin mining, saw its share price rise by more than 34% after announcing a 15-year partnership with Amazon Web Services (AWS). This agreement, worth a staggering $5,5 billion, means Cipher will provide the space and energy for advanced AI work in two phases, starting in July and August of next year. This type of partnership demonstrates the growing interconnection between technology companies and the crypto mining sector, a trend that is increasingly gaining traction.

In addition to the strategic deal with Amazon, Cipher Mining also presented significant financial results. The company posted a significantly reduced net loss of $3 million and an increase in adjusted profit to $41 million in the third quarter. By comparison, in the previous quarter, the net loss was $46 million with an adjusted profit of $30 million. This recovery undoubtedly contributed to the stock's dramatic rise, which rose from $18,65 to a peak of $25,02 during the trading day, ultimately closing at $22,76.

The direction Bitcoin miners are taking, with a strong focus on diversifying their revenue streams, is striking. Since the April 2024 halving, which reduced mining rewards to 3.125 Bitcoin, many miners have shifted their energy supply to hosting services for AI and High-Performance Computing (HPC). This strategic pivot has proven necessary to ensure overall profitability in an increasingly competitive market.

Ciphers grows through strategic partnerships

In September, Google closed a deal to acquire a 5,4% stake in Cipher Mining, as part of a multi-year, $3 billion data center agreement with AI data center company Fluidstack. Cipher's CEO, Tyler Page, emphasized the important role this transaction played in expanding their credibility within the HPC sector. He noted that this agreement with Google is a crucial step toward further growth and industry recognition.

The partnership with Amazon is further strengthened by Cipher's majority stake in a joint venture to develop a gigawatt AI hosting facility in West Texas, called Colchis. This deal allows Cipher to provide the majority of the funding, with an impressive 95% ownership stake in the project. These kinds of initiatives not only underscore Cipher's growth ambitions but also the increasing demand for infrastructure capable of supporting AI workloads.

Tech companies' involvement in the Bitcoin mining sector is clearly increasing this year. Mining company IREN recently signed a multi-year agreement for GPU cloud services with Microsoft worth $9,7 billion. TeraWulf also announced a $3,7 billion hosting agreement with Fluidstack, which is backed by Alphabet, Google's parent company. This illustrates not only the convergence of the tech and crypto worlds but also the growing recognition of the value and potential synergies these sectors bring.

Frequently Asked Questions

What are the implications of Cipher's partnership with Amazon for the crypto market?
The partnership could provide a significant boost to Cipher's reputation and financial health, while also driving the adoption of Bitcoin mining by large enterprise technology providers.

How will the focus on AI and HPC impact the future of Bitcoin mining?
The shift to AI and HPC hosting services could significantly improve miner profitability, especially as mining rewards decline and demand for high-performance data center infrastructure increases.

What does the collaboration between miners and tech giants mean for innovation in the sector?
The close collaboration between miners and technology companies can lead to increased investment in infrastructure and accelerate technological progress within the crypto market, creating new opportunities for growth and efficiency.

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