Bitcoin miner-turned-AI factory Cipher Mining (NASDAQ: CIFR) intends to sell $2 billion in senior secured notes via a subsidiary to finance a massive data center in West Texas, according to a company press release.
The offering targets qualified institutional buyers to fund the completion of the Black Pearl facility, a 300 MW site fully leased to Amazon Data Services. Previously, the company secured a $5.5 billion, 15-year lease with Amazon Data Services, which includes three five-year extension options.
The proposed notes mature in 2031 and are secured by all assets of the issuer, Black Pearl Compute LLC. Amazon serves as the ultimate guarantor for all base rent and operating expenses over the life of the lease.
Cipher plans to use the proceeds to finance the remaining construction costs of the Black Pearl data center in Wink, Texas.
Construction at the Black Pearl site is currently underway with an initial rent commencement date targeted for October 1, 2026. The lease begins in phases as data halls reach “rack-ready” status between September 2026 and February 2027.
To de-risk the construction for Cipher, Amazon agreed to cover construction cost overruns that exceed $9.5 million per IT megawatt. The site features 300 MW of gross capacity and 216 MW of critical IT load.
Infrastructure at the location is already fully approved for interconnection by ERCOT. The facility layout includes multiple data halls and network halls designed to support high-density compute applications.
In addition to the tenant guarantee, Cipher will provide a customary completion guarantee. This obligates the parent company to fund the issuer if note proceeds are insufficient to finish the facility on time.
The notes and related guarantees will be secured by first-priority liens on the issuer’s assets and equity interests. The offering remains subject to market conditions and standard closing requirements.
