Cipher Mining (CIFR) has completed a $1.08 billion private offering of 0.00% convertible senior notes due 2031, up from an initial target of $800 million.
The senior unsecured notes are convertible at $16.03 per share, a 37.5% premium over Thursday’s closing price of $11.66. Investors may require repurchase at par in 2029, while Cipher can redeem the notes starting in 2028 if its shares trade 30% above the conversion price.
Proceeds from the offering will support capped call transactions aimed at reducing share dilution, the Barber Lake data center buildout, and expansion of its 2.4 GW high-performance computing pipeline.
The financing follows Cipher’s $3 billion AI hosting deal with Google and Fluidstack, underscoring the company’s strategic push into high-performance computing and AI infrastructure.
CIFR shares dropped as much as 17% on Thursday, and were down an additional 1% in premarket trading at $11.55. Market observers attribute the decline to delta hedging by banks involved in the convertible note offering, a common short-term headwind seen in similar transactions, including those by Strategy and Semler Scientific.
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