Cipher Digital plans to issue $850 million in convertible bonds to enhance AI data center construction

Nasdaq-listed company Cipher Digital plans to raise funds for its Barber Lake project and high-performance computing (HPC) data center business expansion by issuing $850 million in zero-coupon convertible bonds.

Cipher Digital stated that the private placement could be expanded to a maximum of $1 billion if the initial purchasers exercise their option to purchase additional bonds, which would add $150 million in bonds.

At the same time, the company plans to convert part of its 1.75% convertible bonds maturing in 2030 into common stock. The company has previously adjusted the planning of 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.