Bitcoin miner Cipher (Nasdaq: CIFR) announced redemption for all remaining outstanding warrants before December 26, according to a filing issued on Wednesday.
Cipher said it will redeem all unexercised warrants at 5:00 p.m. New York time on December 26 for $0.01 per warrant. The redemption was triggered after shares closed at or above $18.00 on 20 trading days within a 30-day period ending November 21. The warrants were originally issued under an agreement signed in October 2020 with Continental Stock Transfer & Trust Company.
Meanwhile, the data center company’s share price continues to grind upwards, following repeated deals with major firms like Google, AWS, and Fluidstack. The stock rose 6% Wednesday morning as of publication time.
Holders may exercise warrants until the December deadline at an exercise price of $11.50 per share. Cipher’s board elected to require cashless exercise, meaning holders will not pay cash to convert warrants. Instead, each exercised warrant will yield 0.2687 shares of common stock after netting the payment obligation against shares otherwise due. Any warrant not exercised by the cutoff time will be void, and holders will receive the $0.01 redemption price.
The redemption notice follows Cipher’s recent extension of its contract with Fluidstack that adds 56 megawatts of critical IT load over a 10-year term on November 20. Cipher said the expansion adds about $830 million in contracted revenue and brings its total contracted revenue with Fluidstack to about $3.8 billion across the term.
On the financial side, Google also expanded its backstop of Fluidstack’s obligations by $333 million in connection with the deal, bringing the total to about $1.73 billion. Cipher said the backstop provides credit support for Fluidstack’s payment obligations during construction.
Cipher also proposed issuing $333 million in secured notes due 2030 at 7.125 percent. The notes will be backed by revenue associated with the Barber Lake project. The company said the notes will be secured by site-level cash flows tied to Fluidstack’s obligations and will rank senior to equity distributions.
