According to Bloomberg, Google will acquire the right to purchase a 5.4% stake in crypto mining company Cipher Mining Inc. Cipher said in a statement that Google has agreed to guarantee $1.4 billion in obligations under a contract between Fluidstack and Cipher. Fluidstack signed an initial 10-year agreement with Cipher to lease data center capacity, representing approximately $3 billion in revenue.

Cipher, whose data centers were once used for cryptocurrency mining, said it would leverage its Google support agreement to borrow funds for expansion. Cipher said the contract includes two possible five-year extensions, which could generate an additional $4 billion in revenue. Cipher's stock price rose as much as 24% in pre-market trading before the New York Stock Exchange opened. The stock closed at $14.14 on Wednesday, having more than tripled this year.

This is similar to a deal Google struck with TeraWulf Inc., another cryptocurrency mining data center operator, in which Google received warrants to acquire up to a 14% stake in the company. In that deal, Google also agreed to back a 10-year contract for Fluidstack to purchase its capacity.