Cipher Digital<\/strong>, a publicly traded developer and operator of industrial-scale data centers for high-performance computing workloads, announced on Wednesday that it has signed a 15-year lease<\/strong> for its third data center campus. This strategic move further solidifies its recent transition from a Bitcoin mining company to a provider of solutions that meet the growing demand for artificial intelligence (AI)<\/em> and other computing needs.<\/p>\n Under the agreement, the company will develop and deliver a new high-performance computing (HPC)<\/strong> data center at one of its existing sites, according to a press release. Investors have responded positively to the news, with Cipher\u2019s stock (CIFR) rising more than 8%<\/strong> since the market opened on Wednesday, recently trading at $16.14<\/strong> per share.<\/p>\n “This agreement for our third large AI campus reinforces Cipher’s position as a trusted partner in developing high-quality HPC data center infrastructure for the world’s leading companies,” said Cipher CEO Tyler Page<\/strong> in a statement.<\/p>\n<\/blockquote>\n Cipher also announced the closing of a revolving credit facility<\/strong> that provides up to $200 million<\/strong> in committed capacity, with an additional accordion option of up to $50 million<\/strong>. The facility, which was undrawn at the time of closing, has a scheduled maturity of March 2030<\/strong> and bears interest at the Secured Overnight Financing Rate (SOFR)<\/em> plus 1.25% to 1.75%<\/strong>, with step-down pricing based on the company’s total debt to market capitalization ratio.<\/p>\n “This transaction marks Cipher\u2019s first syndicated revolving credit facility and represents a significant step in the evolution of our capital structure,” said Cipher CFO Greg Mumford<\/strong> in a statement. “We believe this facility highlights the continued strength and maturation of our business, as well as the growing confidence in our long-term strategy from premier financial institutions.”<\/p>\n<\/blockquote>\n Morgan Stanley<\/strong> serves as the administrative agent, lead arranger, and lead bookrunner, with Banco Santander<\/strong>, Goldman Sachs<\/strong>, JPMorgan Chase<\/strong>, Sumitomo Mitsui Banking Corporation<\/strong>, and Wells Fargo<\/strong> also participating in the syndicate.<\/p>\n The company rebranded from Cipher Mining<\/strong> in February, indicating its expansion beyond the original focus on Bitcoin mining to address broader high-performance computing demands. Cipher Digital also divested its interest in three joint mining sites in February, along with mining rigs located at one of its sites.<\/p>\n “While Bitcoin mining played a foundational role in building Cipher\u2019s power origination expertise and large-scale development capabilities, the company\u2019s identity has evolved to focus on enabling next-generation computing at an industrial scale,” the company stated last month, adding that it would “maintain optimized exposure to the Bitcoin mining industry in a capital-light manner.”<\/p>\n<\/blockquote>\n Cipher is among several Bitcoin mining firms that have either fully or partially shifted away from their original core business towards supporting AI and other high-performance computing needs, including Core Scientific<\/strong>, Cango<\/strong>, and Bitfarms<\/strong> (now Keel Infrastructure<\/strong>).<\/p>\n","protected":false},"excerpt":{"rendered":" Cipher Digital Expands Its Horizons Cipher Digital, a publicly traded developer and operator of indu…<\/p>\n","protected":false},"author":3,"featured_media":18296,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[11731,4239,4265,9466,5114,8240,4504,8455,10824,7031],"class_list":["post-18297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","tag-banco-santander","tag-bitcoin","tag-bitfarms","tag-cango","tag-core-scientific","tag-goldman-sachs","tag-jpmorgan","tag-morgan-stanley","tag-sumitomo-mitsui-banking-corporation","tag-wells-fargo"],"yoast_head":"\n\n
Financial Developments<\/h2>\n
\n
Rebranding and Strategic Shift<\/h2>\n
\n