Cipher Digital Prices $850M Convertible Notes for AI Data Centers

Cipher Digital, the former Cipher Mining (renamed in February 2026), priced $850 million of 0% convertible senior notes due November 1, 2032, on October 14, with settlement scheduled for October 16, according to the company's press release filed with an 8-K.

Details

The notes were sold privately to qualified institutional buyers. The initial conversion price is about $15.31 per share, a 35% premium to the $11.34 close on October 13. Initial purchasers hold a 13-day option for up to $150 million more.

Net proceeds are expected to be about $835.1 million. Roughly $89.7 million will fund capped call transactions meant to limit dilution, with the cap at $28.35 per share. The rest is earmarked for an additional equity investment in the Barber Lake project, expansion of the company's high-performance computing (HPC) strategy and its development-site pipeline.

Alongside the offering, Cipher is exchanging about $165.9 million of its 1.75% convertible notes due 2030 for roughly 40.7 million common shares. CryptoSlate reports that the stock closed at $8.98 on October 16, down 10.6% on the day, and that noteholders can demand cash repayment in November 2030, well ahead of the 2032 maturity.

What this means for the market

The deal shows how former bitcoin miners are funding the shift toward AI infrastructure: through debt markets rather than by selling mined coins. For Cipher, the trade-offs are dilution from the note exchange and obligations that come due before 2032.

The direct effect on bitcoin is limited, as the release says nothing about buying or selling BTC. It does add to the pattern of miner capacity moving toward AI; see our note on MARA's exchange transfers. For the live BTC price, see the daily briefing.