Bitcoin mining company Cipher Mining signs a $3 billion AI hosting agreement and plans to issue $800 million in convertible bonds

ChainCatcher news, Bitcoin mining company Cipher Mining announced on Thursday that it has signed a $3 billion, 10-year high-performance computing (HPC) hosting agreement with Fluidstack, while also planning to privately issue $800 million in convertible bonds.

Under the agreement, Cipher will provide 168 megawatts (MW) of critical IT load at its Barber Lake site in Colorado City, with a maximum total capacity of 244 MW. In addition, Cipher plans to privately issue $800 million in zero-coupon convertible preferred bonds to qualified institutional investors, maturing in 2031. The company stated that it will use the funds raised to finance the construction of Barber Lake and accelerate the HPC development of its 2.4 gigawatt pipeline.