Cipher Digital Lands Third AI Data Center Lease, Secures $200M Credit Facility

Cipher Digital has secured a new 15-year data center lease with an investment-grade hyperscale customer while putting in place a $200 million revolving credit facility, underscoring how Bitcoin mining companies are deepening their shift toward AI and high-performance computing infrastructure.

The New York-listed company said Wednesday it has signed its third AI-focused campus lease, a 15-year agreement under which it will build and deliver a new HPC data center at one of its existing sites. Cipher did not disclose the tenant, but described it as investment grade, adding to a growing list of long-duration contracts that are reshaping miners into infrastructure landlords for hyperscalers.

The deal follows earlier large-scale agreements, including a 15-year, $5.5 billion lease with Amazon Web Services, as Cipher accelerates its push into AI data centers amid a prolonged downturn in Bitcoin mining economics.

Alongside the lease, Cipher closed a syndicated revolving credit facility providing up to $200 million, with an additional $50 million accordion feature. The facility, which matures in March 2030, carries an interest rate tied to the Secured Overnight Financing Rate plus 125 to 175 basis points.

Based on recent SOFR levels of roughly 5.2% to 5.4%, the facility implies an effective borrowing cost of about 6.5% to 7.1%, placing it at the lower end of financing costs seen across the sector’s recent wave of debt issuance. The company said the facility was undrawn at closing and would be used to support liquidity, working capital and growth.

The new facility builds on a series of financing moves by Cipher over the past several months as it ramps capital spending for AI infrastructure. In November 2025, the company raised about $1.4 billion through senior secured notes due 2030 carrying a 7.125% coupon, later upsizing the offering with an additional $333 million tranche at the same rate. More recently, in February 2026, Cipher returned to the debt market with a $2.0 billion senior notes issuance due 2031 priced at 6.125%, reflecting improved credit perception as its data center strategy gained traction.

Taken together, the revolving facility — with its sub-7% effective rate — represents a cheaper, more flexible layer of capital compared with those longer-dated bonds, highlighting a maturing capital structure that now spans both high-yield debt and bank financing.

Bitcoin miners have increasingly leaned on external financing as record-low hashprice — the industry’s key profitability metric — squeezes margins. With mining revenues per unit of computing power hovering near historic lows, even large public operators have struggled to generate positive cash flow from core mining operations.

That pressure has accelerated a broader pivot toward AI and HPC infrastructure, where long-term contracts with creditworthy tenants offer more predictable returns than the volatile, network-based rewards of Bitcoin mining.

Cipher’s stock is up 7% during pre-market trading hours on Wednesday following the news.