Cipher Mining shares tumbled nearly 18 percent Thursday, as a sharp fall in Bitcoin prices wiped out optimism from its newly announced multibillion-dollar hosting deal backed by Google.
Bitcoin Slide Hits Crypto Stocks Hard
Cipher Mining closed at $11.64, down 17.7 percent in one of its heaviest trading sessions ever, with nearly 153 million shares changing hands. That was more than four times its average daily volume over the past three months.
The selloff mirrored broader pressure across the crypto mining sector. Riot Platforms dropped 7 percent to $16.74, while Hut 8 Corp sank 7.9 percent to $34.88. The declines followed Bitcoin’s 3.4 percent fall to $109,534.50, as the world’s largest digital asset erased part of its September rally.
Crypto-linked equities have historically shown tight correlation with Bitcoin’s swings. Thursday’s trade reinforced that pattern, as investors sold off miners despite company-specific growth announcements.
Major Hosting Deal with Google Support
The heavy losses came on the same day Cipher unveiled a landmark 10-year artificial intelligence hosting agreement with Fluidstack, worth about $3 billion, with extensions that could push the total to nearly $7 billion.
Alphabet will guarantee $1.4 billion of lease obligations under the deal and will receive warrants representing about 5.4 percent equity in Cipher. The arrangement underscores the pivot many Bitcoin miners are making into high-performance computing, seeking revenue streams less tied to crypto’s volatility.
One analyst described the agreement as a “game-changer” for Cipher’s positioning in the AI infrastructure market. Yet the immediate trading response showed that investors still view Cipher primarily as a Bitcoin proxy, leaving its stock exposed to the coin’s daily price swings.
Wall Street Indexes Also Finish Lower
The weakness was not limited to crypto. Broader U.S. stock indexes ended the day in the red, as losses in technology shares weighed on sentiment.
The S&P 500 slipped 0.5 percent to close at 6,604.72.
The Nasdaq Composite also fell 0.5 percent, ending at 22,384.70.
Although the declines were modest, they capped several days of turbulence for growth stocks. Rising bond yields and uncertainty about the Federal Reserve’s rate path have added pressure on the market, making speculative sectors like crypto mining particularly vulnerable.
Shift Toward AI Signals Strategic Pivot
For Cipher, the deal with Fluidstack represents more than new revenue. It reflects the industry-wide push to diversify beyond Bitcoin mining, which is facing rising energy costs and unpredictable profit margins.
High-performance computing, used to power artificial intelligence models, offers miners a way to leverage their existing data center infrastructure for steady cash flows. The $3 billion contract, with Google’s backing, provides Cipher credibility in a space where demand is surging.
Still, the company faces execution risks. Scaling operations to meet AI demand requires significant capital and technical expertise. Any delay or cost overrun could undermine the anticipated benefits.
Crypto Equities Struggle With Identity
Thursday’s trading highlighted the challenge facing companies like Cipher, Riot, and Hut 8. Despite efforts to branch into AI, cloud hosting, or other fields, their valuations remain tethered to crypto markets.
A look at the sector’s performance showed the trend clearly:
| Company | Stock Move | Closing Price |
|---|---|---|
| Cipher Mining | -17.7% | $11.64 |
| Riot Platforms | -7.0% | $16.74 |
| Hut 8 Corp | -7.9% | $34.88 |
The table shows how Bitcoin’s 3.4 percent decline cascaded through mining stocks, overshadowing even transformative business announcements. Until investors separate these firms from digital asset cycles, sharp swings are likely to continue.
What Comes Next for Cipher
The coming weeks will test whether Cipher can convince Wall Street that its AI pivot is more than a side project. With Alphabet as a financial backer and partner, the company has secured a strong endorsement. But investors will want to see proof that new revenue can offset Bitcoin’s volatility.
Market watchers expect Cipher’s next earnings call to provide details on rollout timelines and expected contributions from the Fluidstack deal. Any signs of faster progress could help stabilize the stock. But as Thursday showed, Bitcoin’s price still holds the deciding vote in Cipher’s daily fortunes.
Cipher’s plunge is a reminder of the sector’s fragility. Even as miners chase new horizons in AI and high-performance computing, their share prices remain tied to the digital currency that first made them relevant.
The question now is whether Cipher can balance its dual identity as both a Bitcoin miner and an AI infrastructure player—or whether one side of the business will always overshadow the other. What do you think? Should crypto miners be seen as tech growth companies or will they remain tied to Bitcoin’s boom-and-bust cycles? Share your view with friends and start the debate.
