Cipher Mining Prices $1.1 Billion Convertible Senior Notes Due 2031

Cipher Mining

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(RTTNews) - Cipher Mining Inc. (CIFR), which develops and operates industrial-scale data centers, Friday announced the pricing of its private offering of $1.1 billion in 0.00 percent convertible senior notes due 2031. The offering size was increased from the previously planned $800 million. The sale and issuance of the notes are expected to close on September 30, subject to customary conditions, the company added.

The company has also granted the initial purchasers a 13-day option to buy up to an additional $200 million of notes. Cipher expects net proceeds of about $1.08 billion from the offering, or approximately $1.27 billion if the option is fully exercised. These figures are after deducting purchaser discounts and commissions, but before estimated offering expenses, Cipher Mining added.

According to the company, around $70 million of the proceeds will be used to fund capped call transactions. The remaining funds will be used to support construction at the Barber Lake data center, speed up its high-performance computing or HPC strategy across its 2.4 GW pipeline, expand development sites, and cover general corporate purposes.

Cipher Mining said that the purchasers exercise their option in full, part of those additional proceeds will also be used for more capped call transactions.