Cipher Digital (CIFR)

Analysis and information

What it does

Cipher Digital, formerly Cipher Mining, develops, owns and operates large data centers for high-performance computing. As of 9-30 it reported 907 MW of operating and contracted capacity, including three data center campus leases with large cloud companies, and $16.6B of contracted revenue. It also runs bitcoin self-mining, and reports about 3.4 GW of pipeline capacity that is subject to ERCOT's batch process in Texas.

Role in the theme

Cipher Digital is a data center landlord in the AI compute hosts (neoclouds) theme.

Latest

• 10-16: Cipher closed $850M of 0.00% convertible senior notes due 11-01-2032, priced on 10-14. The conversion price is about $15.31 a share, 35% above the 10-13 close of $11.34. Note investors can require repurchase for cash on 11-01-2030.
• 10-16: A capped call with a cap price of $28.35 cost about $89.7M. In a concurrent exchange, $165.9M of its 1.75% notes due 2030 were swapped for about 40.7M shares; $6.6M of those notes remain.
• 10-14: Cipher said the rest of the proceeds would fund more equity in its Barber Lake project, its high-performance computing pipeline, new sites and general corporate purposes.

What to watch

• First rent at Barber Lake in Colorado City, Texas, which the company expected in Q4 2026. Its data halls are due from Q4 2026 to Q1 2027. In September the lease term was extended to 20 years, with a leading AI lab committing to the second 10 years.
• Whether the initial purchasers use their 13-day option, which began on 10-16, for up to $150M more notes.
• Texas permits: the state paused permits for infrastructure that directly supports data centers, with no end date.
• Next report: Q3 business update, date not confirmed.