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 heart campus, furthering its current 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 heart at one in all its present websites beneath the settlement, in line with a press launch. Traders seem to love the information, with Cipher’s inventory (CIFR) rising greater than 8% for the reason that opening bell Wednesday to not too long ago commerce at $16.14 per share.
“This settlement for our third giant AI campus reinforces Cipher’s place as a trusted companion to develop high-quality HPC information heart infrastructure for the world’s main firms,” stated 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 possibility 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 Charge (SOFR) plus 1.25% to 1.75%, with step-down pricing based mostly 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,” stated 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 unique Bitcoin mining focus to serve broader high-performance computing demand. Cipher Digital additionally bought off an curiosity in three joint mining websites in February, together with mining rigs housed at one in all its websites.
“Whereas Bitcoin mining performed a foundational position in constructing Cipher’s energy origination experience and large-scale improvement capabilities, the corporate’s identification has developed to give attention to enabling next-generation compute at industrial scale,” it stated final month, including that it could “preserve optimized publicity to the Bitcoin mining trade in a capital-light method.”
Cipher is one in all a number of Bitcoin mining corporations which have made both full or partial strikes away from their unique core enterprise in the direction of powering AI and different high-performance computing wants, together with Core Scientific, Cango, and Bitfarms (now Keel Infrastructure).
