Cipher Digital Inc. has announced a proposed private offering of $850.0 million in aggregate principal amount of convertible senior notes due 2032. The company also granted initial purchasers a 13-day option to buy up to an additional $150.0 million in notes. Proceeds are intended to fund investments, including the Barber Lake project, and expand its high-performance computing (HPC) pipeline. Concurrently, Cipher plans to exchange a portion of its existing 1.75% Convertible Senior Notes due 2030 for common stock.
Key Details
- Offering Details: $850.0 million aggregate principal of 0.00% convertible senior notes due November 1, 2032, with a 13-day option for an additional $150.0 million.
- Concurrent Transaction: A privately negotiated exchange of a portion of its existing 1.75% Convertible Senior Notes due 2030 for shares of the company's common stock.
- Use of Proceeds: To fund capped call transactions, provide additional equity for the Barber Lake project, support the build-out of its HPC pipeline, expand its development site pipeline, and for general corporate purposes.
- Business Context: The financing supports a major lease amendment at the Barber Lake facility, which adds an estimated $5.2 billion in incremental contracted revenue and extends the lease term to 20 years.