Cipher Digital Pricing $810M Senior Secured Notes Due 2031

Cipher Digital announced on June 9, 2026 the pricing of $810 million in senior secured notes due 2031, issued through its subsidiary Stingray Compute LLC . The notes priced at 99.750% of par, translating to a total face value of $810 million with proceeds allocated across three uses: covering remaining construction costs for the Stingray data center facility, reimbursing approximately $61.5 million in prior equity investments, and funding a debt service reserve. The transaction is expected to close June 15, 2026.

The Stingray data center is Cipher Digital's flagship AI compute facility — a large-scale hyperscaler-style campus designed to lease GPU capacity to AI companies and cloud operators. The secured note structure, backed by the facility's assets and contracted revenue, is consistent with how hyperscaler data center developers have accessed the leveraged credit market: long-dated debt with contracted anchor tenants providing the cash flow coverage for interest service. At $810 million, the offering is smaller than the largest data center capital markets deals (which routinely exceed $2 billion) but signals that private infrastructure capital is flowing into mid-tier AI compute operators, not just the Big Three hyperscalers.

For credit market participants watching the AI infrastructure buildout, Cipher Digital's deal follows similar offerings from Digital Bridge, Vantage Data Centers, and Iron Mountain — all of which have successfully placed large-scale AI-facility debt in 2025-2026. The key risk for holders of the 2031 notes is lease concentration: if anchor tenants reduce compute demand as model efficiency improves (as seen in the post-DeepSeek period), Stingray's contracted revenue base could weaken ahead of refinancing. The bullish case is that AI compute demand is structurally undersupplied through 2028 .