Cipher Digital Issues $850 Million Convertible Bonds to Support AI Data Center Construction

Cipher Digital plans to raise funds for the Barber Lake project and the expansion of its high-performance computing data center business by issuing $850 million in zero-coupon convertible bonds. The private placement can be expanded to a maximum of $1 billion, with an additional $150 million in bonds to be issued if the initial purchasers exercise their option to purchase more. The company also plans to convert some of its 1.75% convertible bonds maturing in 2030 into common stock. Cipher Digital has adjusted the planning for its Barber Lake data center project located in Colorado City, Texas, and signed an agreement with Fluidstack and an undisclosed AI laboratory to extend the project contract term from 10 years to 20 years, with expected contract revenue increasing from $3.8 billion to over $9 billion.

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