Cipher Agrees to Cover $359 Million Over Budget for Barber Lake Project

Cipher Mining has agreed to bear the first layer cost of $359.3 million that exceeds the original budget for the Barber Lake project under a revised lease arrangement. Beyond this threshold, the tenant will share half of the additional costs through extra rent over the 20-year contract period, with corresponding returns agreed upon. This figure represents the contract threshold and is not the final total of project overruns. Cipher's management stated that both parties are eager to advance the lease, despite the design not being fully developed, with change orders exceeding expectations, and modifications such as cooling facilities leading to increased construction manpower and disruption of other processes. Additionally, productivity has fallen short of expectations, with equipment delays and downtime also impacting progress. The company noted that the next generation lease will be signed after the design is completed to 30% to 60%. Riot Platforms mentioned industry overruns and the Rockdale budget, stating that about 70% of the total budget will fall under the general contractor's guaranteed maximum price framework, maintaining an estimate of approximately $11 to $12 million per critical IT megawatt. Under the new Corsicana arrangement, tenants will procure and own modular deployments, with Riot estimating about $6 million per megawatt after tenant reimbursements and site engineering. Core Scientific disclosed unfulfilled procurement and construction commitments of approximately $4.4 billion, with nearly all renovations related to CoreWeave funded by clients, and the company's funding having a cap, while expansions with AMD and Neocloud lack equivalent protections.

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