Cipher Mining Prices $1.08B Upsized Convertible Note Offering

Cipher Mining (CIFR) announced a $1.08 billion private offering of convertible senior notes due 2031, increased from the initial $800 million plan.
The conversion price is set at $16.03 per share, representing a 37.5% premium over the previous closing price of $11.66.
Investors can demand repurchase in 2029, while Cipher has redemption rights starting in 2028 if shares exceed 30% above the conversion price.
Proceeds will support capped call transactions, construction of the Barber Lake data center, and expansion of a 2.4 GW computing pipeline.
This financing follows Cipher's $3 billion AI hosting agreement with Google and Fluidstack.
CIFR shares dropped 17% on Thursday and fell an additional 1% in premarket trading to $11.55.
The stock decline is attributed to delta hedging activity by banks involved in the note deal, similar to past occurrences with other companies.