Cipher Mining Raises $150M to Accelerate Bitcoin Miner Shipments

Texas-based Bitcoin miner Cipher Mining (NASDAQ: CIFR) has priced a $150 million offering of convertible senior notes due 2030 to help fund the buildout of its Black Pearl data center and accelerate mining rig deliveries.

The deal, announced Tuesday, is expected to close on May 22, subject to customary closing conditions. It includes a 30-day option for underwriters to purchase up to an additional $22.5 million of notes to cover over-allotments.

The notes will be convertible into Cipher common stock at an initial price of $4.45 per share — a 30% premium to the $3.42 offering price in a concurrent equity transaction. Cipher said the proceeds will primarily be used to complete Phase 1 of the Black Pearl site, a cornerstone of its infrastructure portfolio.

Funds will also go toward discounted mining rig purchases, associated tariffs and shipping costs, and other infrastructure-related capital expenses. Cipher cited general corporate purposes as a secondary use of proceeds.

As part of the financing plan, Cipher amended its supply agreement with Bitmain to accelerate rig deliveries by June 23, 2025. In exchange for early payment, Cipher secured a 10% discount and BTC-linked call options that could offer additional upside. The company has sold 1,261 BTC so far this year — 163% of its year-to-date production — reducing its Bitcoin reserves to 855 BTC as of the end of April.

Cipher’s capital raise comes amid a challenging environment for Bitcoin miners, with the company pushing ahead on infrastructure expansion. It previously said it expects to energize an additional 2.5 EH/s as construction at the Black Pearl site progresses ahead of schedule. Cipher aims to reach 16 EH/s of total hashrate by the end of Q2, supported by its infrastructure, hardware, and financing plans.