Cipher Mining Raises $1.1B Convertible Notes for AI Hosting

Cipher Mining has upsized its convertible notes offering to $1.1 billion with zero coupon and an initial conversion price of $16.03, a 37.5% premium to the previous close. The 2031-dated convertible notes are callable from 2028 or puttable by investors in 2029, and initial purchasers may add up to $200 million. Net proceeds from the convertible notes—about $1.08 billion—will fund capped-call transactions, the Barber Lake data center buildout, and expansion of its 2.4 GW high-performance computing pipeline. This financing underpins a 10-year, $3 billion AI hosting agreement with Fluidstack, backed by Google’s $1.4 billion lease guarantee in exchange for 5.4% in warrants. The Barber Lake site will deliver 168 MW of IT load and includes two five-year renewal options potentially lifting the deal’s value to $7 billion. After the announcement, CIFR shares spiked over 20% in pre-market trading before closing down 17% amid banks’ delta hedging linked to the convertible note transaction.