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, furthering its latest pivot from Bitcoin miner to powering the 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 present websites underneath the settlement, in response to a press launch. Buyers seem to love the information, with Cipher’s inventory (CIFR) rising greater than 8% because the opening bell Wednesday to not too long ago commerce at $16.14 per share.
“This settlement for our third massive AI campus reinforces Cipher’s place as a trusted associate to develop high-quality HPC information middle infrastructure for the world’s main corporations,” mentioned Cipher CEO Tyler Web page, in a press release.
Cipher additionally introduced the closing of a revolving credit score facility offering as much as $200 million of dedicated capability, with an extra accordion choice of as much as $50 million. The ability, which was undrawn at shut, has a scheduled maturity of March 2030 and bears curiosity on the Secured In a single day Financing Fee (SOFR) plus 1.25% to 1.75%, with step-down pricing 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 a serious step within the evolution of our capital construction,” mentioned Cipher CFO Greg Mumford, in a press release. “We imagine this facility highlights the continued power and maturation of our enterprise, in addition to the rising confidence in our long-term technique from premier monetary establishments.”
Morgan Stanley serves 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 within the syndicate.
The corporate rebranded from Cipher Mining in February, saying that it was increasing past its authentic Bitcoin mining focus to serve broader high-performance computing demand. Cipher Digital additionally offered off an curiosity in three joint mining websites in February, together with mining rigs housed at considered one of its websites.
“Whereas Bitcoin mining performed a foundational function in constructing Cipher’s energy origination experience and large-scale growth capabilities, the corporate’s identification has advanced to concentrate on enabling next-generation compute at industrial scale,” it mentioned final month, including that it could “preserve optimized publicity to the Bitcoin mining business in a capital-light method.”
Cipher is considered one of a number of Bitcoin mining corporations which have made both full or partial strikes away from their authentic core enterprise in direction of powering AI and different high-performance computing wants, together with Core Scientific, Cango, and Bitfarms (now Keel Infrastructure).
