Cipher Mining has introduced a $2 billion bid from its subsidiary Black Pearl Compute LLC to construct a big knowledge middle in Texas.
The funds are anticipated to go in direction of the development of Cipher Mining’s Black Pearl facility. The power has a complete capability of 300 megawatts (MW).
Why Cipher Mining is shifting focus from Bitcoin to high-performance computing?
Cipher Mining Inc. has introduced that its wholly owned subsidiary, Black Pearl Compute LLC, will provide $2 billion in senior secured notes to fund its AI ambitions. These notes mature in 2031 and will probably be bought in a personal providing to massive institutional patrons.
Cipher began as a Bitcoin miner, however is now rebranding itself as a pacesetter in industrial-scale knowledge facilities for high-performance computing (HPC). The $2 billion pays for the remaining building prices of the Black Pearl facility positioned in Wink, Texas.
It’s going to even be used to reimburse Cipher Mining for the roughly $232.5 million it has already spent on the undertaking. The remainder of the cash will go into reserves for debt service and numerous charges.
The Black Pearl facility is a crucial a part of Cipher’s future. The positioning covers 70 acres and has a complete energy capability of 300 megawatts (MW). Section I of the undertaking, which foresees 150 MW, got here into operation in 2025.
Cipher’s determination to increase into HPC infrastructure is because of Bitcoin mining turning into much less worthwhile. In early 2026, Bitcoin’s international hashrate hit an all-time excessive, making it tougher and costly for miners to earn rewards.
Moreover, Bitcoin’s “hash value,” which measures the day by day income a miner earns per unit of vitality, has continued to fall all through the primary quarter of 2026.
The 2024 halving occasion, which reduce Bitcoin rewards in half, created a “tough margin atmosphere” that led many public mining firms to understand that relying solely on Bitcoin was too dangerous in 2025 and 2026.
By constructing knowledge facilities for HPC, Cipher Mining can signal long-term leases with massive know-how firms reminiscent of Amazon, Google and Microsoft.
In late 2025, the corporate signed a large 15-year lease with Amazon Internet Companies (AWS) for 300 MW of capability. That deal is estimated to generate $5.5 billion in income over its lifespan. Cipher additionally has a $3 billion internet hosting take care of Fluidstack, which is backed by Google.
Corporations like TeraWulf and Core Scientific have additionally pivoted towards AI infrastructure. TeraWulf just lately expanded its personal amenities in Texas to deal with AI workloads, and Core Scientific signed a multi-million greenback take care of CoreWeave.
Buyers now view these firms as conventional knowledge middle operators, which regularly commerce at increased valuations as a result of their revenues are extra predictable.
What are the monetary dangers of the $2 billion debt providing?
The “Issuer” of the debt is Black Pearl Compute LLC. The debt is “first-priority collateral,” that means lenders have a primary precedence declare on the property if issues go flawed.
The notes are assured by two different subsidiaries, particularly Cipher Black Pearl LLC and 11786 Wink LLC, which personal the land and gear in Texas. The debt is backed by a lien on considerably the entire property of those entities. Mainly, the Black Pearl Fund is the assure for the $2 billion mortgage.
Cipher Mining Inc., the mum or dad firm, additionally promised lenders that if the $2 billion just isn’t sufficient to complete the Texas facility, it can present the extra cash wanted to complete the work on time.
Crypto Inventory. Supply: Google Finance
Regardless of heavy debt and a few current value declines, as of February 2026, Cipher inventory has returned 156% over the previous yr. Its newest quarterly stories from the tip of 2025 confirmed a internet loss, however administration emphasised that its “adjusted earnings” stay constructive as a result of the Bitcoin mining aspect of the enterprise continues to be producing money.
As a result of the debt notes are provided below “Rule 144A” and “Regulation S,” they’re solely accessible to “certified institutional patrons” and sure individuals outdoors america.
