Cipher Digital, a publicly traded developer and operator of industrial-scale information facilities for high-performance computing workloads, introduced Wednesday that it has signed a 15-year lease for its third information middle campus, boosting its current pivot from Bitcoin mining to powering rising demand for AI energy and different computing wants.
The corporate will develop and ship a brand new HPC information middle at considered one of its current websites underneath the settlement, in line with a Press launch. Buyers appear to love the information, and Cipher (CIFR) inventory rising greater than 8% since Wednesday’s opening bell to just lately commerce at $16.14 per share.
“This settlement for our third main AI campus reinforces Cipher’s place as a trusted companion for growing high-quality HPC information middle infrastructure for the world’s main corporations,” Tyler Web page, CEO of Cipher, stated in an announcement.
Cipher additionally introduced the closing of a revolving credit score facility offering as much as $200 million of dedicated capability, with a further accordion possibility of as much as $50 million. The credit score facility, which was undrawn at closing, has a scheduled maturity of March 2030 and bears curiosity on the Secured In a single day Financing Price (SOFR) plus 1.25% to 1.75%, with a tiered worth primarily based on the corporate’s whole debt-to-market capitalization ratio.
“This transaction marks Cipher’s first syndicated revolving credit score facility and represents an vital step within the evolution of our capital construction,” Cipher Chief Monetary Officer Greg Mumford stated in an announcement. “We consider this service highlights the continued power and maturation of our enterprise, in addition to the rising confidence in our long-term technique from main monetary establishments.”
Morgan Stanley is appearing as administrative agent, lead arranger and lead bookrunner, with Banco Santander, Goldman Sachs, JPMorgan Chase, Sumitomo Mitsui Banking Company and Wells Fargo additionally becoming a member of the syndicate.
The corporate modified its title from Cipher Mining in February, saying it was increasing past its unique give attention to Bitcoin mining to serve broader demand for high-performance computing. Cipher Digital additionally bought a stake in three joint mining websites in February, together with mining rigs positioned at considered one of its websites.
“Whereas Bitcoin mining performed a vital function in constructing Cipher’s energy technology experience and large-scale improvement capabilities, the corporate’s id has developed to give attention to enabling next-generation computing on an industrial scale,” stated final monthincluding that it might “keep optimized publicity to the capital-light Bitcoin mining trade.”
Cipher is considered one of a number of Bitcoin mining corporations which have totally or partially pivoted away from their unique core enterprise to push AI and different high-performance computing wants, together with Core Scientific, Cango, and Bitfarms (now Keel Infrastructure).
