Cipher Digital Inc. Announces 20-Year Barber Lake Lease Commitment, ~$5.2B

What Happened
Cipher Digital Inc. announced on Sept. 24–25, 2026 that its subsidiary, Cipher Barber Lake LLC, entered an amendment to the Barber Lake Lease with Fluidstack USA II Inc. and concurrently signed a binding commitment with a leading AI lab for a new ten-year lease (the New Barber Lake Lease). The New Barber Lake Lease will follow the existing Fluidstack lease and extends the aggregate contracted term for the Barber Lake Facility to twenty years, with incremental aggregate contracted revenue expected to be approximately $5.2 billion. The parties also agreed to design change orders and an updated phased delivery schedule, with individual data halls expected to be delivered between Q4 2026 and Q1 2027 and rent commencing per hall upon delivery (first rent expected Q4 2026).

Key Details

• Amendment and commitment entered Sept. 24–25, 2026; press release furnished as Exhibit 99.1.
• Incremental aggregate contracted revenue from the New Barber Lake Lease: approximately $5.2 billion.
• Cipher will absorb the first $359.3 million of cost overruns above the initial budget; tenant will reimburse 50% of any costs above that amount over the aggregate 20-year term as additional rent, structured to provide Cipher a contracted return on reimbursed amounts.
• Delivery schedule: data halls phased between Q4 2026 and Q1 2027; rent begins as each hall is delivered.

Why It Matters
This deal materially lengthens and enlarges Cipher’s contracted revenue footprint for the Barber Lake data center, potentially providing long-term, predictable revenue tied to a major AI tenant. However, Cipher is assuming near-term construction cost risk—covering up to $359.3 million of overruns and sharing costs above that level—so investors should weigh the revenue upside against execution, timing and financing risks disclosed in the filing. The company also includes standard forward-looking statement cautions about uncertainties and risks.