Cipher Mining (CIFR) announced in a press release that it plans to offer $800 million in 0.00% convertible senior notes due 2031 in a private placement to qualified institutional buyers. The company also expects to grant initial purchasers a 13-day option to buy an additional $120 million in notes.
The funding news followed Cipher’s Wednesday announcement for a $3 billion, 10-year colocation agreement with Fluidstack. Google will also backstop the deal and take a 5.4% equity stake in CIFR via warrants.
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The conversion premium will be determined at the time of pricing. Cipher also intends to enter into capped call transactions designed to mitigate potential dilution upon conversion.
Proceeds from the offering will fund these capped call hedges, accelerate construction of the Barber Lake data center, advance its high-performance computing strategy across a 2.4 GW development pipeline, and support expansion of new sites, Cipher said in the release.
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At time of publication, CIFR is up 1% during pre-market hours.
