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Cipher Mining (NASDAQ: CIFR) makes most of its revenue from crypto mining, but that’s about to change. The company has been signing long-term deals with tech giants that need artificial intelligence (AI) data centers. Amazon (NASDAQ: AMZN) is one of Cipher Mining’s largest customers after it agreed to a 15-year lease worth $5.5 billion.
Cipher Mining should continue to win more contracts with tech companies as it brings more gigawatts online. Cipher Mining still has a 3.4 gigawatt pipeline, and most of that energy hasn’t been allocated to customers yet, which makes it a compelling stock to watch.
Although most of Cipher Mining’s story is about its AI pivot, the company’s crypto mining operations are also gaining market share. Cipher Mining’s crypto mining revenue almost tripled year over year to $71.7 million. The crypto mining segment remains unprofitable, but a $37.6 million operating loss compared to a $91.4 million operating loss in the same quarter last year shows progress toward profitability.
Cipher Mining also holds $170 million in Bitcoin (CRYPTO: BTC), giving it direct exposure to any Bitcoin rallies. Other crypto miners immediately sell the Bitcoin that they mine, which limits their future upside from rising Bitcoin prices. In the near term, however, Bitcoin’s volatility and declining value may not contribute further to Cipher’s bottom line.
An expanding crypto mining business with lower operating losses will make it easier for the company to scale into artificial intelligence, which is the bigger long-term story for Cipher Mining’s rally.
Cipher Mining wrapped up 2025 by announcing it had acquired a 200 megawatt site in Ohio. This site is expected to energize in 2027 and bring Cipher Mining’s total pipeline to 3.4 gigawatts across eight sites.
This move broadens Cipher Mining’s geographical footprint, as it represents its first site outside of Texas. It can help the company quickly build its energy pipeline as it works to secure more deals with tech companies, but the company already has plenty of gigawatts to spare.
The Amazon deal demonstrates that Cipher Mining doesn’t need the gigawatts energized right away to secure deals. Amazon will receive part of the promised 300 megawatts in July 2026, with the full delivery expected to be completed in fourth-quarter 2026. Rent will commence in August, so it will take several months before the Amazon deal translates into annual recurring revenue.
