Cipher Mining’s $1.1B Convertible Note: A Tale of 37.5% Premium and 17% Drop!

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Markets

What to know:

  • The company sold $1.1B of 0.00% convertible senior notes due 2031, upsized from $800M, with an initial conversion price of $16.03 per share (37.5% premium). Oh, and they’re giving investors a 37.5% premium. Because why not? 💸
  • Net proceeds of ~$1.08B to fund capped call transactions, Barber Lake construction, and growth of Cipher’s 2.4 GW high-performance computing pipeline. Because nothing says “trust us” like a 2.4 GW pipeline. 🧠

Cipher Mining (CIFR) priced a $1.08B private offering of a 0.00% convertible senior notes due 2031, upsized from $800M initially. Because who doesn’t want a 0.00% interest rate? 🤷‍♂️

The notes, senior unsecured obligations, are convertible at an initial price of $16.03 per share, a 37.5% premium to Thursday’s $11.66 close. Because nothing says “trust us” like a 37.5% premium. 🧠

Net proceeds of $1.08B will fund capped call transactions, the Barber Lake data center buildout, and expansion of its 2.4 GW high-performance computing pipeline. Because nothing says “innovation” like a 2.4 GW pipeline. 🧠

The financing comes as Cipher yesterday secured a $3B AI hosting deal with Google and Fluidstack. Because nothing says “we’re serious” like a $3B deal. 🤖

CIFR shares fell as much as 17% on Thursday and are. down a further 1% in premarket trading at $11.55. Because nothing says “confidence” like a 17% drop. 📉

The decline in the stock price Thursday was likely driven by delta hedging activity from banks involved in the convertible note deal, which often pressures shares in the short term as counterparties manage their exposure. Because who needs stability when you can have a rollercoaster? 🎢

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2025-09-26 17:09