Cipher Mining Completes $1.08B Upsized Convertible Note Offering
- Cipher Mining (CIFR) priced a private offering of $1.08 billion in convertible senior notes due in 2031, increased from an initial $800 million.
- The notes have a conversion price of $16.03 per share, reflecting a premium of 37.5% over Thursday’s closing price of $11.66.
- Net proceeds will support capped call transactions and the buildout of the Barber Lake data center, along with expanding its high-performance computing pipeline.
- CIFR shares fell by as much as 17% on Thursday and are currently down another 1% in premarket trading at $11.55.
- The decline was likely influenced by delta hedging activities from banks involved in the deal.
The financing comes shortly after Cipher secured a $3 billion AI hosting agreement with Google and Fluidstack, highlighting its growth strategy amidst market fluctuations.
With the upsized offering now totaling $1.08 billion, Cipher aims to enhance its infrastructure while navigating significant stock price volatility following the announcement.(Source)
