Cipher plans to issue $1.4 billion in bonds to build an HPC data center in Texas

Jinse Finance reported that mining company Cipher Mining plans to raise $1.4 billion through a private bond issuance to fund the construction of its high-performance computing (HPC) facility at Barber Lake, Texas. This move follows its recent leasing partnership with AWS. Cipher stated on Tuesday that its subsidiary, Cipher Compute LLC, intends to issue $1.4 billion in senior secured notes due 2030 to qualified institutional investors under Rule 144A of the Securities Act. The funds raised will be used to build the Barber Lake data center near Colorado City, Texas. The notes will be guaranteed by Cipher Barber Lake LLC and secured by a first-priority pledge on almost all assets of the issuer and guarantor, as well as the equity held by the parent company. The collateral package also includes an escrow account established by Fluidstack US AII Inc., and, prior to the facility's completion, a pledge of Google LLC's warrants to subscribe for Cipher shares. This debt financing follows Cipher's announcement on Monday of a roughly $5.5 billion, 15-year AWS lease agreement to provide 300 MW of turnkey data center capacity starting in 2026 to support AI workloads. Previously, Cipher had established HPC partnerships with Fluidstack and Google, indicating that this bitcoin mining company is accelerating its transition toward AI and cloud computing hosting services.