Cipher Mining Surges 22.04 as $5.5 Billion AWS Deal and AI Infrastructure Pivot Boost 23rd-Ranked Trading Volume

Market Snapshot

Cipher Mining (CIFR) surged 22.04% on November 3, 2025, with a trading volume of $3.00 billion, ranking 23rd in daily trading activity. The stock’s performance followed a significant strategic shift, as the company announced a $5.5 billion, 15-year lease agreement with Amazon Web Services (AWS) to provide 300 megawatts (MW) of AI computing capacity by late 2026. This marked a pivotal pivot from its traditional cryptocurrency mining operations to high-performance computing (HPC) infrastructure, aligning with surging demand for AI-driven data centers.

Key Drivers

Cipher Mining’s stock rally was primarily fueled by the announcement of a landmark $5.5 billion lease deal with AWS, a transaction that positions the company as a major player in the AI infrastructure sector. The agreement, spanning 15 years, requires Cipher to deliver 300 MW of power capacity—split into two phases starting in July 2026—with both air- and liquid-cooled racks tailored for AI workloads. The first phase is set to commence in July 2026, with rent payments beginning in August 2026, providing the firm with a predictable revenue stream. This contract, coupled with a previously announced $3 billion deal with Fluidstack and Google, brings Cipher’s total AI hosting contracts to approximately $8.5 billion. The AWS deal validates Cipher’s strategic repositioning, as hyperscalers like AWS increasingly seek partners to address the growing power shortfall in AI infrastructure.

A second catalyst was the announcement of a new 1-gigawatt (GW) AI-focused data center, named “Colchis,” in West Texas. Cipher will hold 95% equity ownership in the joint venture, which is expected to secure 1 GW of power capacity via a Direct Connect Agreement with American Electric Power (AEP). Construction, slated for completion by 2028, will leverage Cipher’s existing expertise in energy-intensive infrastructure and its access to low-cost power in Texas. The Colchis project adds to the company’s pipeline of 3.2 GW of site capacity, reinforcing its ability to meet future demand for AI computing. The site’s proximity to an AEP substation and its 620-acre footprint highlight its strategic advantages for large-scale HPC deployment, further enhancing investor confidence.

The company’s third-quarter financial results also contributed to the stock’s momentum. Despite a GAAP net loss of $3 million, Cipher reported adjusted earnings of $41 million, driven by $72 million in revenue. The firm completed a $1.3 billion convertible note offering to fund its expansion, signaling strong capital availability for infrastructure development. Additionally, Cipher’s pipeline of 3.2 GW of site capacity—of which the AWS deal accounts for 9%—positions it to pursue further contracts as AI demand accelerates. The combination of long-term revenue visibility, robust capitalization, and operational scalability underscores the stock’s appeal in a sector experiencing rapid growth.

Broader industry trends further amplified Cipher’s stock performance. The company’s pivot to AI infrastructure aligns with a broader shift among former crypto miners, who are repurposing their energy and computing assets to serve hyperscalers. For example, IREN (IREN), another AI-focused miner, surged 21% on a $9.7 billion cloud computing deal with Microsoft. This trend highlights the sector’s transformation, as firms with existing power contracts and data center capabilities become critical to the AI ecosystem. Cipher’s CEO, Tyler Page, emphasized the strategic validation of the company’s thesis, stating that Tier 1 hyperscalers are increasingly turning to non-traditional Texas locations to address power constraints.

The AWS and Colchis announcements also addressed liquidity and scalability concerns that had previously weighed on the stock. By securing a 15-year lease with a major hyperscaler and expanding its Texas footprint, Cipher demonstrated its ability to generate recurring revenue from high-margin infrastructure. The inclusion of liquid cooling technology—critical for managing heat from AI chips—further differentiates the company’s offerings. As AI workloads intensify, the demand for advanced cooling solutions will likely grow, positioning Cipher to capture a larger share of the market.

In summary, Cipher Mining’s 22.04% stock surge reflects a confluence of strategic, financial, and industry-level factors. The AWS lease and Colchis project solidify its role in the AI infrastructure boom, while its financial flexibility and operational scale address key investor concerns. As hyperscalers continue to prioritize power and computing capacity, Cipher’s repositioning could drive sustained growth, aligning with the broader shift toward AI-driven technological innovation.