Cipher Digital Stock Pops as Firm Bolsters Shift From Bitcoin Mining With 15-Year Data Center Deal

Cipher Digital, a publically traded developer and relation of industrial-scale information centers for high-performance computing workloads, announced Wednesday that it has signed a 15-year lease for its 3rd information halfway campus, furthering its caller pivot from Bitcoin miner to powering the increasing request for AI powerfulness and different computing needs.

The institution volition make and present a caller HPC information halfway astatine 1 of its existing sites nether the agreement, according to a press release. Investors look to similar the news, with Cipher’s banal (CIFR) rising much than 8% since the opening doorbell Wednesday to precocious commercialized astatine $16.14 per share.

"This statement for our 3rd ample AI field reinforces Cipher's presumption arsenic a trusted spouse to make high-quality HPC information halfway infrastructure for the world's starring companies," said Cipher CEO Tyler Page, successful a statement.

Cipher besides announced the closing of a revolving recognition installation providing up to $200 cardinal of committed capacity, with an further accordion enactment of up to $50 million. The facility, which was undrawn astatine close, has a scheduled maturity of March 2030 and bears involvement astatine the Secured Overnight Financing Rate (SOFR) positive 1.25% to 1.75%, with step-down pricing based connected the company's full indebtedness to marketplace capitalization ratio.

“This transaction marks Cipher’s archetypal syndicated revolving recognition installation and represents a large measurement successful the improvement of our superior structure,” said Cipher CFO Greg Mumford, successful a statement. “We judge this installation highlights the continued spot and maturation of our business, arsenic good arsenic the increasing assurance successful our semipermanent strategy from premier fiscal institutions.”

Morgan Stanley serves arsenic administrative agent, pb arranger, and pb bookrunner, with Banco Santander, Goldman Sachs, JPMorgan Chase, Sumitomo Mitsui Banking Corporation, and Wells Fargo besides joining successful the syndicate.

The institution rebranded from Cipher Mining successful February, saying that it was expanding beyond its archetypal Bitcoin mining absorption to service broader high-performance computing demand. Cipher Digital besides sold disconnected an involvement successful 3 associated mining sites successful February, on with mining rigs housed astatine 1 of its sites.

Core Scientific May Sell 'All' Bitcoin to Finance AI Pivot

“While Bitcoin mining played a foundational relation successful gathering Cipher’s powerfulness origination expertise and large-scale improvement capabilities, the company’s individuality has evolved to absorption connected enabling next-generation compute astatine concern scale,” it said past month, adding that it would “maintain optimized vulnerability to the Bitcoin mining manufacture successful a capital-light manner.”

Cipher is 1 of respective Bitcoin mining firms that person made either afloat oregon partial moves distant from their archetypal halfway concern towards powering AI and different high-performance computing needs, including Core Scientific, Cango, and Bitfarms (now Keel Infrastructure).