Cipher Mining and TeraWulf Expand AI Businesses

Bitcoin miner Cipher Mining has announced a major expansion of its artificial intelligence and high-performance computing business. The company plans to raise up to $2 billion through a private placement of senior notes maturing in 2031. The bonds will be issued by its subsidiary Black Pearl, with Cipher Mining providing a full guarantee.

The proceeds will be used to complete a data center in Wink, Texas, which is being repositioned toward HPC and AI workloads. Part of the capital will also reimburse approximately $232.5 million previously advanced to Black Pearl through an internal credit facility.

Cipher acquired the site in December 2023 with an initial grid connection capacity of up to 300 megawatts. In June 2025, the facility began operating as a Bitcoin mining center, reaching a hashrate of around 2.5 EH/s while consuming 150 megawatts. The company now plans to gradually repurpose the site for AI computing.

Partnerships support diversification

Cipher Mining has actively expanded its AI footprint in recent months. In September, the company leased a data center in Colorado City, Texas, to UK-based AI startup Fluidstack. The deal was supported by Google, which obtained an equity stake in Cipher in exchange for guarantees totaling $1.4 billion.

In November, Cipher signed a long-term agreement with Amazon Web Services valued at $5.5 billion. The partnership focuses on delivering high-performance computing services. According to BitcoinMiningStock, Cipher operates a deployed Bitcoin hashrate of approximately 23.6 EH/s, but AI-related revenue is becoming increasingly important.

TeraWulf adds capacity for AI workloads

Another Bitcoin miner, TeraWulf, has also announced plans to expand its AI infrastructure. The company is acquiring two sites in Kentucky and Maryland that could add up to 1.5 gigawatts to its energy portfolio. Once completed, TeraWulf’s total capacity may reach 2.8 gigawatts.

The Kentucky site includes 480 megawatts of connected power with room for expansion. Its location away from major metropolitan areas makes it suitable for latency-sensitive workloads such as HPC. In Maryland, TeraWulf is acquiring a power plant with 210 megawatts of generation capacity, which is expected to increase to 500 megawatts after upgrades and potentially reach 1 gigawatt in the longer term.

Mining industry shifts toward AI

Analysts say the moves by Cipher Mining and TeraWulf highlight a broader industry trend. Rising mining difficulty, tighter margins and volatile Bitcoin prices are pushing miners to diversify. AI and high-performance computing are emerging as key growth areas, reshaping the future of large-scale mining companies.

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