Cipher Plans $1.4B Debt Offering to Fund Texas HPC Data Center Following AWS Deal
Cipher Mining (NASDAQ: CIFR) plans to raise $1.4 billion through a private debt offering to finance the construction of its Barber Lake high-performance computing (HPC) facility in Texas, following the lease deal with AWS.
Cipher said on Tuesday that its subsidiary, Cipher Compute LLC, intends to issue $1.4 billion of senior secured notes due 2030 to qualified institutional buyers under Rule 144A of the Securities Act. Proceeds will help fund the construction of the Barber Lake site near Colorado City, Texas.
The notes will be guaranteed by Cipher Barber Lake LLC and secured by first-priority liens on substantially all of the issuer’s and guarantor’s assets, as well as equity interests held by its parent entity. The collateral package also includes a lockbox account to be established by Fluidstack USA II Inc., and—prior to completion of the facility—a pledge by Google LLC of its warrants to purchase Cipher stock.
The debt raise follows Cipher’s announcement Monday of a roughly $5.5 billion, 15-year lease agreement with AWS to deliver 300 megawatts of turnkey data center capacity for AI workloads starting in 2026. That deal came on the heels of Cipher’s earlier HPC partnership with Fluidstack and Google, signaling the Bitcoin miner’s accelerating pivot toward AI and cloud-compute hosting.
Cipher’s shares, which surged 22% on Monday after the AWS news, were down 7.6% in pre-market trading Tuesday following the debt announcement.
The financing push adds to a growing trend among Bitcoin miners raising large-scale secured debt to fund AI-related infrastructure. Earlier last month, Terawulf Inc. completed over $3 billion in senior secured note issuances to support its own HPC expansion, including projects backed by Google and Fluidstack at its Lake Mariner campus in New York and another facility development in Texas.
