Bitcoin News Today: Cipher's Google-Backed AI Pact Secures Revenue Floor, Shares Jump 7%

Cipher Mining Inc. (NASDAQ: CIFR) shares surged 7% after hours on October 2, 2025, following the completion of Phase 1 at its Black Pearl data center in Texas, which now operates at 3.4 exahashes per second (EH/s) of self-mining capacity-surpassing the company's previous guidance of 2.5 EH/s for Q2 2025 . This milestone, announced July 2, marks a significant step in Cipher's expansion plans, with the facility expected to reach 23.1 EH/s upon full installation. The company's total self-mining hashrate now stands at 16.8 EH/s, reflecting a strategic focus on scaling infrastructure while optimizing energy costs through a 4CP (Four Coincident Peak) avoidance strategy .

The stock's rally followed broader industry momentum driven by Bitcoin's price surge to over $116,000 and a high-profile 10-year, 168-megawatt artificial intelligence (AI) hosting agreement with Fluidstack, backed by Google. The deal, announced September 25, 2025, includes $1.4 billion in debt guarantees from Google and a 5.4% equity stake in Cipher, generating $3 billion in contracted revenue . This pivot to AI and high-performance computing (HPC) has repositioned Cipher as a hybrid crypto-infrastructure developer, with analysts upgrading price targets to $17–$15, reflecting confidence in the company's diversified revenue streams .

Financial results for Q2 2025 underscored operational strength despite GAAP losses. The company reported $43.6 million in revenue, with non-GAAP EBITDA of $30.3 million, driven by efficient power management (20.8 joules per terahash) and a growing Bitcoin treasury of 1,063 BTC . While GAAP net losses widened to $45.8 million, cost discipline and scale improvements offset volatility. Cipher's market cap expanded to $5.4 billion, up from $600 million a year earlier, as investors priced in the AI deal's potential to diversify earnings beyond Bitcoin's price swings .

Analysts highlighted Cipher's competitive advantages, including low energy costs ($0.025–0.03/kWh) and a 2.6 gigawatt development pipeline . However, risks remain tied to Bitcoin's cyclical nature, regulatory pressures (e.g., New York's proposed excise tax on mining energy use), and capital expenditures for AI infrastructure. Despite these challenges, 12 of 14 analysts maintain "Buy" ratings, with average price targets of $15.2 .

Industry trends further bolster Cipher's outlook. The crypto mining sector's total market cap hit $58 billion in September 2025, with Cipher's 321% year-to-date gain outpacing peers like Marathon Digital (MARA) and Riot Platforms (RIOT) . The convergence of mining and AI infrastructure is accelerating, as firms like Iris Energy and Applied Digital expand GPU capacity for AI workloads. Cipher's strategic alignment with Fluidstack and Google positions it to capitalize on long-term AI infrastructure demand, offering a revenue floor even if Bitcoin prices correct .

: Cipher Mining's Black Pearl Phase I Surpasses Q2 2025 Guidance (https://finance.yahoo.com/news/cipher-mining-cifr-black-pearl-151316150.html)

: Google-Backed AI Deal Sends Cipher Mining (CIFR) Stock Soaring (https://ts2.tech/en/google-backed-ai-deal-sends-cipher-mining-cifr-stock-soaring-is-20-next/)

: Cipher Mining Hashrate Surges 36% Above Target at Black Pearl (https://www.stocktitan.net/news/CIFRW/cipher-mining-surpasses-hashrate-growth-forecasts-at-black-pearl-and-ye9lwhtb2a42.html)