Cipher Digital Secures 15-Year AI Data Center Lease, Raises $200M Credit Line
Cipher Digital signed a 15-year lease for its third high-performance computing data center campus under a hyperscaler deal and will develop the facility at an existing site. The company also closed an undrawn $200 million revolving credit facility (plus $50 million accordion) maturing March 2030, sending shares up 8%.
1. Third Data Center Lease
Cipher Digital has entered a 15-year lease for its third large-scale high-performance computing data center campus at an existing site, marking a strategic shift from Bitcoin mining to serving AI and other compute-intensive clients under a hyperscaler agreement.
2. New Revolving Credit Facility
The company closed on an undrawn $200 million syndicated revolving credit facility, with an additional $50 million accordion option. The facility bears interest at SOFR plus 1.25%–1.75%, has step-down pricing based on leverage, and matures in March 2030.
3. Market Reaction and Strategic Pivot
Shares of Cipher Digital jumped more than 8% to $16.14 following the announcements. The company rebranded in February and has sold mining assets to focus on industrial-scale AI and high-performance computing infrastructure.