Cipher Digital jumps 9% on AI data center deal & $200M credit

• Cipher Digital (CIFR) shares surged by 9% in pre-market trading following the announcement of a major lease and new financing.
• The company secured a 15-year lease agreement with an investment-grade hyperscale tenant for its third data center campus.
• A new $200 million revolving credit facility has been established to fund future growth and AI infrastructure development.

Expansion into Hyperscale Data Centers

Cipher Digital has reached a significant milestone by entering into a long-term 15-year lease with a high-profile, investment-grade hyperscale tenant. This agreement focuses on the company’s third data center campus, where Cipher will develop a specialized facility for high-performance computing (HPC). By utilizing its existing site infrastructure, the company aims to become a primary partner for major technology firms that require robust environments for AI workloads.

Strengthening Financial Liquidity

To support its ambitious expansion plans, the company has successfully secured a revolving credit facility of up to $200 million. This financial package also includes a $50 million accordion option, providing further flexibility. The facility is backed by a syndicate of prominent global banks and offers non-dilutive capital, which will be used to:

• Enhance overall corporate liquidity.
• Support the development of new infrastructure projects.
• Fund strategic growth initiatives without impacting shareholder equity.

Strategic Pivot and Rebranding

Formerly known as Cipher Mining, the company recently rebranded to Cipher Digital to better reflect its evolving business model. While it previously focused on bitcoin production, the firm is now strategically prioritizing the development of industrial-scale data centers. This shift is designed to meet the surging global demand for cloud computing and artificial intelligence infrastructure, positioning Cipher as a diversified player in the high-tech computing sector.