Cipher Digital Plans $850 Million Convertible Bond Offering

Cipher Digital plans to raise $850 million through a private offering of zero-coupon convertible bonds to expand its AI data-center capacity and high-performance computing business.

The offering could grow to $1 billion if initial buyers exercise an option to purchase an additional $150 million of notes. The proceeds would support the Barber Lake project in Colorado City, Texas, and broader expansion of the company’s high-performance computing data-center operations.

Cipher Digital also plans to convert part of its convertible bonds due in 2030, which carry a 1.75% coupon, into common stock.

The company has extended the planned contract period for Barber Lake from 10 years to 20 years under agreements with Fluidstack and an unnamed AI lab. Expected contract revenue has increased from $3.8 billion to more than $9 billion.