Cipher Digital (CIFR) shares fell more than 12% after the company announced a proposed private offering of $850 million in 0.00% convertible senior notes due 2032.
Purchasers will have a 13-day option to acquire an additional $150 million in notes.
Investors may be concerned about potential shareholder dilution. Those concerns coincide with a plan to exchange a portion of the company’s existing 1.75% notes due 2030 for shares of common stock.
Cipher plans to use the proceeds to support growth, including additional equity for its Barber Lake data center project. Funds will also support the expansion of its high-performance computing (HPC) strategy and other general corporate purposes.