Cipher Digital Expands with $810M Senior Secured Notes Issuance

Cipher Digital issued $810 million in senior secured notes at 6% to fund its data center growth. The company has recently announced new data center plans, including the development of 'Stingray'.

CIFR has priced an $810 million offering of senior secured notes through its wholly owned subsidiary Stingray Compute LLC, a major financing to build out its high-performance computing footprint. The notes carry a 6.000% coupon, are due in 2031, and priced at 99.75% of principal, with the offering expected to close around June 15.

Proceeds will fund a 70-megawatt HPC data center in Texas under the 'Stingray' project, a facility that is fully pre-leased and backed by long-term Amazon Web Services guarantees and rent escalators. The AWS anchor de-risks the buildout by locking in contracted cash flows, and the structure is secured by first-priority liens on substantially all assets of the issuer and its guarantor.

The deal illustrates how former bitcoin miners like Cipher are pivoting toward AI and cloud-compute infrastructure, using asset-backed debt against contracted hyperscaler demand rather than diluting equity. Execution and on-time delivery of the Stingray facility will be the key variables to watch as CIFR scales its data-center ambitions.