Cipher

River

Bitcoin

<p data-start="246" data-end="618">This article was first published on <a href="https://deythere.com/">Deythere</a>.</p>
<p data-start="246" data-end="618">Bankers have never loved mining. Electricity is due on schedule, while revenue moves with Bitcoin price, network difficulty, and transaction fees. That mismatch is why more Bitcoin miners are testing AI hosting, where long leases can resemble infrastructure income. A Google-provided financial backstop tied to those leases can make lenders more willing to fund the build.</p>
<h2 data-start="620" data-end="653" id="a-structure-lenders-recognize">A structure lenders recognize</h2>
<p data-start="655" data-end="1182">The mechanics are straightforward as a campus owner brings land, grid interconnection, and the ability to deliver large blocks of power. A tenant signs a multi-year lease for critical IT load, meaning the power that actually feeds servers.</p>
<p data-start="655" data-end="1182">With a backstop supporting the tenant’s lease obligations, a build can be financed like digital infrastructure rather than a crypto-adjacent experiment. For <a href="https://deythere.com/cardone-capital-makes-crypto-play-3000-more-btc-in-it/">Bitcoin miners</a>, that difference can decide whether a project is funded with reasonable debt or pushed into expensive equity funding.</p>
<h2 data-start="1184" data-end="1219" id="terawulf-scale-then-financing">TeraWulf: scale, then financing</h2>
<p data-start="1221" data-end="1774">At Lake Mariner, TeraWulf disclosures describe total contracted capacity rising above 360 MW of critical IT load and about $6.7 billion in contracted revenue over base terms, with the possibility of higher totals if extensions are exercised. They also describe Google increasing backstop support to about $3.2 billion and receiving warrants that translate into roughly 14% pro forma ownership. For Bitcoin miners, the practical point is that a power-rich mining campus can be financed as data center infrastructure.</p>
<p data-start="1221" data-end="1774"><img decoding="async" class="aligncenter size-full wp-image-2903" src="https://deythere.com/wp-content/uploads/2024/09/DALL·E-2024-09-03-00.52.39-A-landscape-image-illustrating-the-impact-of-rising-mining-difficulty-on-Bitcoin-miners.-The-scene-features-a-vast-rocky-terrain-with-glowing-digital.webp" alt="Google’s Credit Backstop Is Turning Bitcoin Miners into AI Data Center Builders" width="1792" height="1024" title="Google’s Credit Backstop Is Turning Bitcoin Miners into AI Data Center Builders 4" srcset="https://deythere.com/wp-content/uploads/2024/09/DALL·E-2024-09-03-00.52.39-A-landscape-image-illustrating-the-impact-of-rising-mining-difficulty-on-Bitcoin-miners.-The-scene-features-a-vast-rocky-terrain-with-glowing-digital.webp 1792w, https://deythere.com/wp-content/uploads/2024/09/DALL·E-2024-09-03-00.52.39-A-landscape-image-illustrating-the-impact-of-rising-mining-difficulty-on-Bitcoin-miners.-The-scene-features-a-vast-rocky-terrain-with-glowing-digital-300x171.webp 300w, https://deythere.com/wp-content/uploads/2024/09/DALL·E-2024-09-03-00.52.39-A-landscape-image-illustrating-the-impact-of-rising-mining-difficulty-on-Bitcoin-miners.-The-scene-features-a-vast-rocky-terrain-with-glowing-digital-1024x585.webp 1024w, https://deythere.com/wp-content/uploads/2024/09/DALL·E-2024-09-03-00.52.39-A-landscape-image-illustrating-the-impact-of-rising-mining-difficulty-on-Bitcoin-miners.-The-scene-features-a-vast-rocky-terrain-with-glowing-digital-768x439.webp 768w, https://deythere.com/wp-content/uploads/2024/09/DALL·E-2024-09-03-00.52.39-A-landscape-image-illustrating-the-impact-of-rising-mining-difficulty-on-Bitcoin-miners.-The-scene-features-a-vast-rocky-terrain-with-glowing-digital-1536x878.webp 1536w" sizes="(max-width: 1792px) 100vw, 1792px"></p>
<h2 data-start="1776" data-end="1818" id="cipher-turning-demand-into-collateral">Cipher: turning demand into collateral</h2>
<p data-start="1820" data-end="2359">Cipher disclosed a 10-year, 168 MW AI hosting agreement at its Barber Creek site, framed at about $3 billion in contracted revenue over the base term. The company also stated that Google will backstop $1.4 billion of the tenant’s lease obligations to support project-related debt financing, paired with warrants that could convert into a roughly 5.4% pro forma equity position. For Bitcoin miners, it underlines the sequence: secure demand, add credit enhancement, then borrow against contracted rent.</p>
<h2 data-start="2361" data-end="2410" id="hut-8-long-duration-changes-the-risk-profile">Hut 8: long duration changes the risk profile</h2>
<p data-start="2412" data-end="2928">Hut 8 outlined a 15-year lease for 245 MW of IT capacity at its River Bend campus, valued at $7.0 billion over the base term and up to $17.7 billion if renewal options are exercised. The company described the deal as a triple-net lease and said Google is providing a financial backstop covering obligations for the 15-year base term. For Bitcoin miners, the headline is duration. A 15-year contract can carry fixed costs through weak cycles in a way that mining revenue often cannot.</p>
<h2 data-start="2930" data-end="2958" id="indicators-to-watch-next">Indicators to watch next</h2>
<p data-start="2960" data-end="3531">Mining fundamentals still matter. Bitcoin price, difficulty, and fee trends shape profitability, and energy costs still decide who can keep machines running. The AI side adds a different checklist: energization timelines, cooling design, redundancy targets, and connectivity. If a site was built for curtailment, an AI tenant may demand higher uptime and tighter service levels.</p>
<p data-start="2960" data-end="3531">That is why Bitcoin miners that want the AI lane must invest in operations, not only construction. Permitting and interconnection queues matter too, because schedule risk can erase a contract.</p>
<h2 data-start="3533" data-end="3547" id="conclusion">Conclusion</h2>
<p data-start="3549" data-end="3893">Google is not buying these companies, but it is shaping incentives. By backstopping lease obligations, it helps turn AI hosting into something banks can fund at scale. For <a href="https://deythere.com/union-jack-oil-eyes-bitcoin-mining-shift-as-network/">Bitcoin miners</a>, the opportunity is a blended model: keep exposure to mining upside, while adding multi-year contracted revenue that steadies cash flow when hashprice cools.</p>
<h2 data-start="3895" data-end="3925" id="faqs">FAQs</h2>
<p data-start="3927" data-end="4072">What is a lease backstop?</p>
<p data-start="3927" data-end="4072">It is financial support that helps cover lease payments if the tenant cannot pay.</p>
<p data-start="4074" data-end="4245">Why do these deals matter now?</p>
<p data-start="4074" data-end="4245">They can replace uncertain quarterly cash flow with long-duration contracts that support project debt.</p>
<p data-start="4247" data-end="4351">Does AI hosting replace mining?</p>
<p data-start="4247" data-end="4351">It does not replace it, but it can diversify revenue for Bitcoin miners.</p>
<h3 data-start="4353" data-end="4365" id="glossary">Glossary</h3>
<p data-start="4367" data-end="4441">Critical IT load: Power delivered to servers, excluding facility overhead.</p>
<p data-start="4443" data-end="4538">Network difficulty: A system that adjusts how hard it is to mine blocks as competition changes.</p>
<p data-start="4540" data-end="4688">Triple-net lease: A lease where the tenant pays most operating expenses, improving owner cash flow visibility.</p>
<p data-start="4540" data-end="4688">References</p>
<p data-start="4540" data-end="4688"><span class="" data-state="closed"><span class="ms-1 inline-flex max-w-full items-center relative top-[-0.094rem] animate-[show_150ms_ease-in]" data-testid="webpage-citation-pill"><a class="flex h-4.5 overflow-hidden rounded-xl px-2 text-[9px] font-medium transition-colors duration-150 ease-in-out text-token-text-secondary! bg-[#F4F4F4]! dark:bg-[#303030]!" href="https://www.sec.gov/Archives/edgar/data/1083301/000110465925079463/tm2523651d3_ex99-1.htm" target="_blank" rel="noopener nofollow"><span class="relative start-0 bottom-0 flex h-full w-full items-center"><span class="flex h-4 w-full items-center justify-between"><span class="max-w-[15ch] grow truncate overflow-hidden text-center">SEC</span></span></span></a></span></span></p>
<p data-start="4540" data-end="4688"><span class="" data-state="closed"><span class="ms-1 inline-flex max-w-full items-center relative top-[-0.094rem] animate-[show_150ms_ease-in]" data-testid="webpage-citation-pill"><a class="flex h-4.5 overflow-hidden rounded-xl px-2 text-[9px] font-medium transition-colors duration-150 ease-in-out text-token-text-secondary! bg-[#F4F4F4]! dark:bg-[#303030]!" href="https://www.globenewswire.com/news-release/2025/09/25/3156107/0/en/Cipher-Mining-Signs-168-MW-10-Year-AI-Hosting-Agreement-with-Fluidstack.html" target="_blank" rel="noopener nofollow"><span class="relative start-0 bottom-0 flex h-full w-full items-center"><span class="flex h-4 w-full items-center justify-between"><span class="max-w-[15ch] grow truncate overflow-hidden text-center">GlobeNewswire</span></span></span></a></span></span></p>
<p data-start="4540" data-end="4688"><span class="" data-state="closed"><span class="ms-1 inline-flex max-w-full items-center relative top-[-0.094rem] animate-[show_150ms_ease-in]" data-testid="webpage-citation-pill"><a class="flex h-4.5 overflow-hidden rounded-xl px-2 text-[9px] font-medium transition-colors duration-150 ease-in-out text-token-text-secondary! bg-[#F4F4F4]! dark:bg-[#303030]!" href="https://www.prnewswire.com/news-releases/hut-8-signs-15-year-245-mw-ai-data-center-lease-at-river-bend-campus-with-total-contract-value-of-7-0-billion-302644600.html" target="_blank" rel="noopener nofollow"><span class="relative start-0 bottom-0 flex h-full w-full items-center"><span class="flex h-4 w-full items-center justify-between"><span class="max-w-[15ch] grow truncate overflow-hidden text-center">PR Newswire</span></span></span></a></span></span></p>

Google’s Credit Backstop Is Turning Bitcoin Miners into AI Data Center Builders

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