Google has taken a new step into cryptocurrency mining by supporting a deal that gives it the chance to own a stake in Cipher, a Bitcoin
$109,608.72
mining company listed on the Nasdaq.
Cipher revealed on September 25 that it has entered a 10-year agreement with Fluidstack, a cloud platform focused on artificial intelligence (AI).
The plan will have Cipher provide 168 megawatts of computing power at its Barber Lake facility in Colorado City, Texas, with room to expand to 244 megawatts.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is a Crypto Mining Rig? Is it Worth it? (EASILY Explained)
Instead of being limited to mining Bitcoin, the site will also handle tasks that require heavy computing power.
To help fund the project, Google will guarantee about $1.4 billion of Fluidstack’s lease payments. In return, Google will receive warrants that allow it to purchase nearly 24 million Cipher shares.
If exercised, this would give Google a stake of approximately 5% in the mining company.
Cipher’s Chief Executive, Tyler Page, said the partnership shows growing momentum in high-performance computing and called the decision the start of more projects aimed at expanding the company’s role in this industry.
The deal highlights the close connection between cryptocurrency mining and AI. Both fields require large amounts of energy and strong computing infrastructure.
By joining forces with Fluidstack and gaining Google’s backing, Cipher is positioning its Texas site to support both industries.
On September 16, Google released a new open protocol that lets AI systems handle payments, including those made with stablecoins. How does it work? Read the full story.
