Cipher’s $850 million AI bet deepens investor scrutiny as Bitcoin miner’s stock plunges 52%
Cipher Digital shares fell 10.6% to $8.98 after it exchanged $165.9 million of 2030 convertible notes for 40.7 million shares, diluting shareholders, and completed an $850 million convertible bond offering to fund AI-focused data center expansion. The new notes mature in 2032, with holders able to seek cash repayment in 2030 under specified conditions. Proceeds will support Barber Lake and other high-performance computing projects. Cipher is shifting from Bitcoin mining toward infrastructure leasing, but its second-quarter revenue was about $25 million against a $30 million adjusted EBITDA loss. Black Pearl began delivering capacity ahead of schedule and has started generating rental payments, while investors weigh whether future income can justify the expansion costs.
