Cipher Digital stock jumps after extending Barber Lake lease

Investing.com -- Cipher Digital Inc. (NASDAQ: CIFR) shares rose 5.9% Friday morning following the company’s announcement that it extended the lease term for its Barber Lake data center in Colorado City, Texas from 10 years to 20 years, increasing total contracted revenue to over $9 billion.

The data center developer executed an amendment to its existing lease with Fluidstack, coupled with a binding commitment from a leading AI lab to lease the facility for an additional 10-year term. The additional commitment is expected to generate approximately $5.2 billion of incremental contracted revenue, bringing total contracted revenue at the facility from $3.8 billion to over $9 billion.

The lease amendment establishes a phased delivery schedule for the site, with individual data halls expected to be delivered from the fourth quarter of 2026 through the first quarter of 2027. Rent will commence for each data hall as it is delivered, with the first rent commencement expected in the fourth quarter of 2026.

Under the cost reimbursement framework established in connection with the amendment, Cipher will bear the first $359.3 million of costs in excess of the initial budgeted amount under the Barber Lake Lease. The tenant will reimburse the company over the aggregate 20-year term for 50% of any costs above that amount, payable as additional rent.

Tyler Page, Chief Executive Officer, commented that the extension reflects the value of the infrastructure being built at Barber Lake, which was designed as a long-lived, mission-critical asset.

Original Article

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