Cipher Digital Seeks $810M Debt Raise to Fund Stingray Data Center
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Key Takeaways
- Stingray Compute LLC is offering $810 million in senior secured notes due 2031 in a private placement.
- Proceeds will finance the Stingray Facility data center and reimburse $63.6 million in prior equity contributions.
- The notes are secured by first-priority liens on the assets of the issuer and its guarantor subsidiary.
- Cipher Digital is providing a completion guarantee to ensure the data center project is finished if offering proceeds are insufficient.
Cipher Digital (NASDAQ: CIFR) Inc. is planning to raise $810 million through another secured debt offering, extending a project-finance strategy that has already funded billions of dollars of data center development as the company shifts deeper into AI infrastructure.
The New York-based company said Monday that its wholly owned subsidiary Stingray Compute LLC intends to offer $810 million of senior secured notes due 2031 in a private transaction. The proceeds will be used to finance the remaining cost of the Stingray Facility, reimburse Cipher for about $63.6 million of prior equity contributions to the project, and fund debt service reserves.
The offering is subject to market conditions, and Cipher did not disclose an expected interest rate in the announcement.
The proposed raise marks the latest in a series of large project-level financings by Cipher, which has become one of the most aggressive examples of bitcoin miners using their access to power and data center sites to pivot into high-performance computing and AI infrastructure.
