Cipher Digital's Barber Lake lease extension lifted its contracted revenue past $9 billion; TeraWulf and Applied Digital stock also gained.

A lease extension at one Texas site has pushed Cipher Digital's contracted revenue potential into territory that is reshaping how Wall Street values the entire class of former Bitcoin miners now pursuing AI infrastructure deals.

The AI infrastructure sector is gathering momentum as investors focus on long-term power access and contracted revenue, with Cipher Digital leading a group that includes TeraWulf and Applied Digital. The company's Barber Lake agreement provides extended revenue visibility while highlighting the potential for former Bitcoin miners to convert power assets into AI data-center infrastructure.

**Cipher Digital's Barber Lake Deal Extends Revenue Visibility**

Cipher Digital stock is up 4% to $18.74 as the company's Barber Lake lease extension draws attention to its contracted AI infrastructure revenue. The agreement with Fluidstack covers the full 300-megawatt Barber Lake site in Texas, with the lease structure extending to as many as 20 years and roughly $9 billion of potential revenue if the available extensions are exercised.

The Barber Lake arrangement provides Cipher Digital with a larger contracted revenue base while reinforcing its shift away from Bitcoin mining and toward high-performance computing infrastructure. Google also provides financial support for Fluidstack's obligations, adding another layer of credit backing to the project.

Cipher Digital has been navigating the power-access question central to AI data-center development in Texas. ERCOT has issued conditional grid-capacity designations for several Cipher Digital projects, though these designations do not represent final approval for active hookups, leaving construction, interconnection, and delivery timelines as critical factors.

**UBS Highlights the AI Infrastructure Pivot**

UBS Group's recent coverage adds momentum to the sector, with the bank initiating coverage on five AI data-center companies and assigning Buy ratings across the group. UBS cited constrained compute supply and access to power as key advantages for companies transitioning from cryptocurrency mining to AI infrastructure.

The coverage includes TeraWulf and Applied Digital alongside Cipher Digital, with UBS estimating that the five companies collectively have roughly 5 gigawatts of leased capacity and another 12 gigawatts of potential expansion. UBS also expects AI infrastructure requirements to grow substantially through the end of the decade, though the companies still face construction, financing, and execution risks.

**TeraWulf and Applied Digital Join the Move**

TeraWulf stock is up 2% to $16.55, while Applied Digital stock is also up 2% to $27.51. Both companies are part of the broader group of former or current digital-asset infrastructure operators seeking to monetize large power positions through AI and high-performance computing customers.

TeraWulf has signed major AI infrastructure agreements, including a long-term arrangement with Anthropic, while Applied Digital has continued developing large-scale data-center capacity for AI workloads. Cipher Digital's latest news extends market interest beyond one company as investors consider whether long-term contracts can make power-rich infrastructure assets more valuable.

**AI Infrastructure Stocks Still Face Execution Risks**

The Global X Data Center & Digital Infrastructure ETF is up 4% to $29, while the Invesco QQQ Trust is up 0.49% to $744.70. The larger gain in data-center infrastructure suggests the group is attracting stronger buying interest than the broader technology-heavy index.

A key issue for Cipher Digital, TeraWulf, and Applied Digital remains the difference between contracted capacity and operational capacity. While long-term leases provide revenue visibility, construction schedules, grid connections, financing requirements, and customer delivery milestones determine when contracts translate into actual operating revenue.

For Cipher Digital, the Barber Lake extension could give the market another reason to focus on the company's contracted revenue rather than its legacy mining operations. Investors should watch for signs that ERCOT designations progress toward usable power capacity and that Cipher Digital continues meeting construction milestones, while keeping position sizes modest given the execution risks.