Cipher Digital, a publicly traded developer and operator of industrial-scale data centers for high-performance computing workloads, announced Wednesday that it has signed a 15-year lease for its third data center campus, furthering its recent pivot away from Bitcoin miners to meeting growing demands for AI power and other computing needs.
Under the agreement, the company will develop and deliver a new HPC data center at one of its existing sites, people said. press release. Investors seem to like the news, with Cipher Stock (CIFR) Increased by more than 8% The stock has recently traded at $16.14 per share since Wednesday’s opening bell.
“This agreement for our third large-scale AI campus strengthens Cipher’s position as a trusted partner developing high-quality HPC data center infrastructure for the world’s largest enterprises,” Cipher CEO Tyler Page said in a statement.
Cipher also announced the closure of its revolving credit facility, which provides up to $200 million in committed capacity and additional accordion options of up to $50 million. The facility, which was undrawn at the time of closing, is scheduled to mature in March 2030 and carries an interest rate of 1.25% to 1.75% above the secured overnight financing rate (SOFR), with tiered pricing based on the company’s total debt to market capitalization ratio.
“This transaction is Cipher’s first syndicated revolving credit facility and represents a major step in the evolution of our capital structure,” Greg Mumford, Cipher’s chief financial officer, said in a statement. “We believe this facility highlights the continued strength and maturity of our business and the growing confidence in our long-term strategy from leading financial institutions.”
Morgan Stanley is acting as executive agent, lead arranger and lead bookrunner, with Santander Bank, Goldman Sachs, JPMorgan Chase & Co., Sumitomo Mitsui Banking Corporation and Wells Fargo also participating in the syndicate.
The company rebranded from Cipher Mining in February and said it was expanding beyond its initial Bitcoin mining focus to meet broader high-performance computing demands. Cipher Digital also sold its interests in three joint mines and the mining rig installed at one of the sites in February.
“While Bitcoin mining played a fundamental role in building Cipher’s power generation expertise and large-scale development capabilities, the company’s identity has evolved to focus on enabling next-generation computing at industrial scale.” said last monthit added, “maintains optimized exposure to the Bitcoin mining industry in a capital-sparing manner.”
Cipher is one of several Bitcoin mining companies, including Core Scientific, Cango, and Bitfarms (now Keel Infrastructure), that have fully or partially transitioned away from their original core business to power AI and other high-performance computing needs.
