Cipher Digital, a publicly traded developer and operator of industrial-scale data centers for high-performance computing workloads, has signed a 15-year lease for its third data center campus. The company will build and deliver a new HPC data center at one of its existing sites under the terms of the agreement. Shares of Cipher, trading under the ticker CIFR, rose more than 8% following the announcement on Wednesday, recently changing hands at $16.14 per share.
Chief Executive Tyler Page said the agreement for the company’s third large AI campus reinforces Cipher’s standing as a trusted partner for developing high-quality HPC data center infrastructure for leading global companies. The lease represents a continued push by the firm to capture growing demand for AI computing power and other high-performance workloads. The company has been actively repositioning itself to serve this expanding market.
Alongside the lease announcement, Cipher Digital disclosed the closing of a revolving credit facility offering up to $200 million in committed capacity, with an additional accordion option of up to $50 million. The facility was undrawn at closing and carries a scheduled maturity date of March 2030. It bears interest at the Secured Overnight Financing Rate plus between 1.25% and 1.75%, with step-down pricing tied to the company’s total debt to market capitalization ratio.
Chief Financial Officer Greg Mumford described the transaction as Cipher’s first syndicated revolving credit facility and a significant milestone in the evolution of its capital structure. He said the facility reflects the continued strength and maturation of the business, as well as growing confidence from premier financial institutions in the company’s long-term strategy. Morgan Stanley serves as administrative agent, lead arranger, and lead bookrunner for the facility. Banco Santander, Goldman Sachs, JPMorgan Chase, Sumitomo Mitsui Banking Corporation, and Wells Fargo also participate in the syndicate.
The company rebranded from Cipher Mining in February, signaling a strategic expansion beyond its original Bitcoin mining operations to address broader high-performance computing demand. As part of that transition, Cipher also divested its interest in three joint mining sites and sold mining rigs housed at one of those locations. The company stated that Bitcoin mining played a foundational role in building its power origination expertise and large-scale development capabilities, but that its identity has since evolved toward enabling next-generation compute at industrial scale.
Cipher indicated it intends to maintain exposure to the Bitcoin mining industry in a capital-light manner going forward. The company is among several former Bitcoin mining firms that have made full or partial moves away from their original core businesses to focus on powering AI and other high-performance computing needs. Others making similar transitions include Core Scientific, Cango, and Bitfarms, now operating under the name Keel Infrastructure.
Originally reported by Decrypt.
