Cipher Mining (CIFR) has priced a $1.08 billion private offering of 0.00% convertible senior notes due 2031, up from an initial $800 million target.
The senior unsecured notes are convertible at $16.03 per share, a 37.5% premium to Thursday’s closing price of $11.66. Investors can demand repurchase at par in 2029, while Cipher may redeem the notes starting in 2028 if its stock trades 30% above the conversion price.
Net proceeds will fund capped call transactions to limit share dilution, the Barber Lake data center buildout, and expansion of its 2.4 GW high-performance computing pipeline.
The offering follows Cipher’s recent $3 billion AI hosting agreement with Google and Fluidstack, reflecting its push into high-performance computing and AI infrastructure.
CIFR shares fell as much as 17% on Thursday and were down an additional 1% in premarket trading at $11.55. Analysts attribute the decline to delta hedging by banks involved in the convertible note deal—a short-term price pressure seen in similar offerings by Strategy and Semler Scientific.
