Earlier in the day, the Bitcoin miner had proposed a senior notes offering of $800 million to private institutional buyers, which resulted in a 17.5% decline in share price.
Cipher Mining (CIFR) raised the size of its proposed convertible bond offering by over 37% to $1.1 billion on Thursday, amid efforts to bolster its data center capacity.
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Earlier in the day, the Bitcoin miner had proposed a senior notes offering of $800 million to private institutional buyers, which resulted in a 17.5% decline in the regular trading session, the single biggest percentage decline in over six months.
The company noted that the zero-interest notes will mature on Oct. 1, 2031, unless earlier repurchased, redeemed, or converted. The notes can be converted into cash, shares, or a combination of both. The initial conversion rate will be 62.3733 shares of common stock per $1,000 principal amount of notes, which will essentially imply a conversion price of $16.03 per share, a premium of 37.5% compared to its last closing price.
With the proceeds, Cipher will primarily fund data center construction at the Barber Lake facility, accelerate the build-out of its high-performance computing (HPC) strategy across its 2.4 gigawatt pipeline, and continue to expand its pipeline of development sites.
Retail sentiment on Stocktwits about Cipher was in the ‘extremely bullish’ territory at the time of writing, while retail chatter was ‘extremely high.’
Cipher is rapidly expanding its data center capacity to tap into the soaring demand for artificial intelligence applications. On Thursday, the company also entered into a ten-year agreement with Fluidstack, an artificial intelligence cloud platform provider, to supply 168 megawatts (MW) of dedicated IT power from its Barber Lake facility.
Retail investors were further enthused as Alphabet Inc.’s (GOOGL) Google agreed to guarantee $1.4 billion of Fluidstack’s lease commitments. In return, Google will receive warrants that allow it to purchase approximately 24 million shares of Cipher stock, handing the tech giant a 5.4% stake in Cipher.
“They scared a lot of beginner investors and salad hands out of CIFR today,” Bitcoin investor and founder of Alpine Fox, Mike Alfred, said on X. “This is the beginning of a new chapter, not the end. The market digests the convert, and then we go higher.”
The Fluidstack deal could add $3 billion in revenue for Cipher over the initial contract period. Two optional five-year extensions could raise that figure to $7 billion.
“We need this correction. The bull cycle is intact. Wall Street rewards patience,” one Stocktwits user wrote.
“People will soon be bragging about how they bought [Cipher shares] under $12. This pullback is so overdone,” another user said.
Cipher stock has surged nearly 141% this year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
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