Bitcoin miner Cipher Mining Inc. announced on December 23, 2025, that it acquired a 200-megawatt site in Ohio called "Ulysses," marking the company's first expansion outside of Texas.

The acquisition gives Cipher direct access to PJM Interconnection, the largest wholesale electricity market in the United States.

Strategic Entry into PJM Market

The Ohio site includes 195 acres of land with secured capacity from AEP Ohio, a utility provider serving nearly 1.5 million customers across the state. All utility agreements and interconnection approvals are already in place, positioning the facility to energize in the fourth quarter of 2027.

PJM Interconnection operates the nation’s largest wholesale electricity market, serving more than 65 million people across 13 states and the District of Columbia. The market manages over 183,000 megawatts of generation capacity and 88,000 miles of transmission lines.

Tyler Page, CEO of Cipher Mining, said in the announcement that “hyperscalers are driving unprecedented demand for large-scale sites.” He added that the new site in a new power market gives the company additional capacity to expand its high-performance computing (HPC) hosting business while broadening its geographical footprint.

Source: @CipherInc

With this acquisition, Cipher’s development pipeline now totals 3.4 gigawatts across eight sites. The company specifically designed the Ulysses location for HPC applications, citing its acreage, energization timeline, diverse fiber paths, and proximity to a major metropolitan area.

From Bitcoin Mining to AI Infrastructure

Cipher Mining started as a Bitcoin mining company but has rapidly transformed into an AI infrastructure provider throughout 2025. The company operates four Bitcoin mining data centers in Texas and mined approximately 689 Bitcoin in the third quarter of 2025, with a self-mining hashrate of about 23.6 exahashes per second.

However, the company’s future now focuses heavily on hosting high-performance computing workloads for artificial intelligence applications. In September 2025, Cipher signed a 10-year agreement with AI cloud platform Fluidstack worth approximately $3 billion. Google backed this deal by guaranteeing $1.4 billion of Fluidstack’s obligations and receiving warrants for roughly 24 million Cipher shares, giving Google about a 5.4% stake.

The company expanded that partnership in November 2025, adding another 56 megawatts at its Barber Lake site in Texas, representing approximately $830 million in additional contracted revenue. Fluidstack now leases the entire 300-megawatt capacity at Barber Lake.

Major Cloud Provider Partnerships

Cipher’s transformation accelerated in November 2025 when the company announced a $5.5 billion, 15-year lease agreement with Amazon Web Services to provide space and power for AI workloads. The company will deliver 300 megawatts of computing capacity by the end of 2026, with the first phase starting in July 2026.

The company also secured majority ownership in a joint venture to develop a 1-gigawatt site in West Texas called “Colchis,” scheduled for completion in 2028. Across all its AI hosting agreements with Fluidstack, Google, and AWS, Cipher has secured approximately $8.5 billion to $9 billion in contracted revenue.

This pivot reflects a broader industry trend. Multiple Bitcoin mining companies have signed similar deals with major technology firms in 2025, including IREN’s $9.7 billion agreement with Microsoft and TeraWulf’s partnership with Fluidstack backed by Google.

Analysts from Macquarie gave “outperform” ratings to several miners including Cipher, highlighting the shift from crypto operations to AI and HPC models. The firm noted that AI-driven Bitcoin miners are performing better as data center confidence grows despite Bitcoin’s volatility.

Financial Performance and Market Position

Cipher Mining reported third-quarter 2025 revenue of approximately $72 million, representing a 65% increase from the second quarter. The company’s adjusted earnings reached $41 million, or $0.10 per diluted share. Its cash position improved significantly, jumping from $63 million in the second quarter to approximately $1.2 billion in the third quarter after completing a convertible offering that raised about $1.3 billion in gross proceeds.

The company also completed a $333 million additional senior secured notes offering in November 2025 to fund its expanding operations.

Cipher’s stock has shown significant volatility throughout 2025. Shares gained 362.89% over a six-month period according to financial data, though they remain about 36% below their 52-week high of $25.52 reached on November 5, 2025. On the day of the Ohio acquisition announcement, the stock traded around $16.30, down slightly from the previous session.

Analysts remain optimistic about Cipher’s transformation. Compass Point reiterated its Buy rating with a $28 price target, representing approximately 72% upside potential. Other firms including Canaccord Genuity and H.C. Wainwright maintain Buy ratings with targets in the $27 to $30 range.

Industry-Wide Transformation

The shift from Bitcoin mining to AI infrastructure hosting addresses fundamental challenges facing the mining industry. Bitcoin miners face mounting pressure from rising energy costs, equipment expenses, and Bitcoin’s periodic reward cuts that reduce mining revenues. The most recent halving event in April 2024 cut block rewards in half, making operations more difficult.

AI infrastructure, by contrast, offers more predictable revenue through long-term contracts spanning 10 to 15 years. Technology companies need massive amounts of computing power for training and running AI models, creating unprecedented demand for data center capacity.

Companies like Cipher can repurpose their existing facilities, power infrastructure, and technical expertise for artificial intelligence applications instead of cryptocurrency mining. Their experience managing large-scale energy contracts and computing infrastructure makes them attractive partners for hyperscalers like Google, AWS, and Microsoft.

However, executing these projects requires significant upfront capital. Project costs are estimated at $9 to $11 million per megawatt of critical computing load, meaning the 200-megawatt Ohio site could require $1.8 billion to $2.2 billion in total investment.

The Ohio site’s location in the PJM market could command premium pricing due to the region’s high concentration of end-demand. The site won’t generate revenue until late 2027, but it adds strategic capacity for future HPC contracts in one of the nation’s most valuable power markets.

The Power Play

Cipher Mining’s Ohio acquisition represents more than geographic expansion. The company is betting that its transformation from Bitcoin miner to AI infrastructure provider will create long-term value as artificial intelligence reshapes technology infrastructure. With nearly $9 billion in contracted revenue and a 3.4-gigawatt development pipeline, Cipher has positioned itself at the intersection of two of technology’s most demanding industries: cryptocurrency and artificial intelligence. Whether this strategy succeeds depends on the company’s ability to execute its ambitious construction timeline while managing the substantial capital requirements of building data centers at scale.