Cipher Digital saw its shares climb 9% in pre-market trading following a pair of significant announcements from the former cryptocurrency mining company. The gains came after the firm disclosed a long-term lease agreement tied to its expanding data center operations. Investor interest appears driven by the company’s continued pivot toward high-performance computing infrastructure.
The company confirmed it has signed a 15-year lease with a hyperscale tenant to develop its third high-performance computing data center campus. The agreement marks another step in Cipher Digital’s transition away from its crypto mining roots. Details about the identity of the hyperscale tenant were not disclosed in the announcement.
Alongside the lease, Cipher Digital also secured a revolving credit facility of up to $200 million to support its growth ambitions. The facility includes an additional $50 million option, providing the company with further financial flexibility. The funds are intended to support expansion efforts and enhance overall liquidity.
The dual announcements signal a broader strategic shift for the company, which has been repositioning itself within the high-performance computing and data center sector. Demand for data center capacity has grown substantially as technology companies seek infrastructure to support artificial intelligence and cloud computing workloads. Cipher Digital appears to be targeting this market with its campus development plans.
The pre-market share movement of CIFR reflects market enthusiasm for the company’s updated direction and the financial backing now in place. The combination of a long-term revenue-generating lease and a substantial credit facility provides both income visibility and capital for near-term development. No further timeline or financial terms related to the campus project were provided in the announcement.
Originally reported by CoinDesk.
