Cipher Digital slides on proposed $850 mln convertible notes offering
CIFR•Cipher Digital shares fell 12.46% in premarket trading after it announced a proposed $850 million private offering of convertible senior notes due 2032. The notes carry a 0% coupon, and initial purchasers have a 13-day option to buy up to an additional $150 million.
1. Notes offering details
Cipher Digital said it plans to use proceeds to fund capped call transactions, investment in its Barber Lake project, high-performance computing expansion and general corporate purposes. The capped calls aim to reduce potential shareholder dilution when the notes convert into shares, subject to a cap.
