Cipher Mining (NASDAQ: CIFR) has priced an upsized private offering of $1.1 billion in 0.00% convertible senior notes due 2031, up from the initially announced $800 million. The offering is scheduled to settle on September 30 and Cipher has granted the initial purchasers a 13-day option to buy up to an additional $200 million principal amount of notes.
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The initial conversion rate is set at 62.3733 shares per $1,000 principal amount, implying a conversion price of roughly $16.03 per share, or a premium of about 37.5% to the $11.66 closing price on September 25.
The company has also allocated $70 million to fund capped call transactions that limit dilution. The initial cap price is set at $23.32 per share and represents a 100% premium to the September 25 closing price.
Net proceeds are expected to total approximately $1.08 billion, and rising to about $1.27 billion if the initial purchasers exercise their $200 million overallotment option.
The proceeds will help finance construction at Cipher’s Barber Lake data center and expand its 2.4 GW HPC pipeline. Yesterday, Cipher announced a 10-year, $3 billion deal involving Fluidstack and Google.
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At time of publication, CIFR is up 1.8% during pre-market hours.
