Cipher Digital plans to issue $850 million in convertible bonds to raise funds for data center projects.

October 13: Nasdaq-listed company Cipher Digital (CIFR) plans to raise funds through the issuance of $850 million zero-coupon convertible notes to support its Barber Lake project and expand its high-performance computing (HPC) data center business.

The company said in an October 13 announcement that the private placement could be increased to as much as $1 billion if the initial purchasers exercise their option to purchase an additional $150 million in notes. In addition, Cipher also plans to exchange some of its existing convertible notes, which carry a 1.75% coupon rate and mature in 2030, for common stock.

The financing comes after the company adjusted the development plan for its Barber Lake project in Colorado City, Texas. The adjustments extended the project's contract term while increasing the construction costs borne by Cipher. In September, the company said that an agreement with Fluidstack and an unnamed AI lab would extend the facility's contracted lease term from 10 years to 20 years, and increase contracted revenue from $3.8 billion to more than $9 billion.