CIFR Prices $1.1B Upsized Convertible Note Offering

Cipher Mining announced an upsized offering of $1.1 billion in 0.00% convertible senior notes due 2031, increased from an initial target of $800 million. The notes are convertible at an initial price of $16.03 per share, representing a 37.5% premium over the recent stock price of $11.66. The net proceeds, estimated at around $1.08 billion, will be allocated towards funding capped call transactions, construction of the Barber Lake data center, and expansion of their high-performance computing pipeline. Following the announcement, CIFR shares dropped by as much as 17%, reflecting typical market reactions to convertible note offerings due to delta hedging by involved banks. This financing effort aligns with Cipher's commitment to a $3 billion AI hosting partnership with Google and Fluidstack, indicating the company's strategic focus on enhancing its computing infrastructure amidst competitive market conditions.

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