Cipher Digital Plans $850 Million Convertible Sale to Fund Data Centers
Key Takeaways
- Cipher Digital is proposing a $850 million offering of 0.00% convertible senior notes due 2032.
- Initial purchasers may be granted a 13-day option for up to $150 million in additional notes.
- Proceeds will fund capped calls, the Barber Lake project, and HPC infrastructure.
Cipher Digital (NASDAQ: CIFR) Inc. plans to raise $850 million through a sale of zero-coupon convertible notes to help fund its Barber Lake project and expand its high-performance computing data-center business.
The proposed private offering could increase to $1 billion if initial purchasers exercise an option to buy another $150 million of notes, the company said in an Oct. 13 announcement. Cipher also plans to exchange some of its existing 1.75% convertible notes due in 2030 for common shares.
The Nasdaq-listed company’s stock fell 9.6% to $11.75 in premarket trading on Tuesday, after closing the previous session down 3.85% at $13.
The fundraising follows changes to the Barber Lake development in Colorado City, Texas, that extended its contracted life while increasing Cipher’s construction-cost commitments. In September, the company said agreements with Fluidstack and an unnamed AI laboratory would extend the facility’s contracted lease duration to 20 years from 10 and increase contracted revenue to more than $9 billion from $3.8 billion.
