Cipher Digital Seeks $810M Debt Raise to Fund Stingray Data Center

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.

The company previously raised $1.4 billion of 7.125% senior secured notes due 2030 in November to finance construction of its Barber Lake high-performance computing data center near Colorado City, Texas. Later that month, it issued an additional $333 million of 7.125% notes as a further issuance tied to the same facility, following an expansion of its data center lease with Fluidstack that was backed by Google.

In February, Cipher followed with a $2.0 billion senior secured notes offering at a lower 6.125% coupon due 2031 to finance its Black Pearl high-performance computing facility in Wink, Texas, and reimburse prior equity contributions.

The Stingray offering suggests Cipher is continuing to rely on secured, subsidiary-level debt as a core funding tool for its AI data center buildout, rather than relying only on parent-level equity or convertible debt. The structure resembles its earlier financings: the notes will be guaranteed by Cipher Stingray LLC and secured by first-priority liens on substantially all assets of the issuer and guarantor, as well as equity interests in the issuer held by its direct parent.

Cipher will also provide a customary completion guarantee, meaning it would be required to fund the issuer as needed to complete the Stingray Facility if proceeds from the notes are not enough.

The debt raise comes as bitcoin miners and former mining-focused data center operators increasingly seek to monetize large power positions through AI and cloud infrastructure contracts. Those projects require substantially larger upfront capital commitments than bitcoin mining sites, pushing companies toward project debt backed by data center assets, leases and completion guarantees.

Cipher’s financing pattern also reflects a broader change in how public miners are valued and funded. The sector spent much of the previous bitcoin cycle relying on equity issuance and machine-backed or bitcoin-backed financing. The AI infrastructure boom has opened a different channel: debt investors are now willing to underwrite large-scale data center construction when the projects are backed by contracted revenue, creditworthy tenants or strategic counterparties.

Still, the use of secured debt adds execution risk. The Stingray notes, if completed, would increase Cipher’s project-level leverage while the facility remains under development. The company’s completion guarantee also leaves the parent on the hook if construction costs exceed the proceeds available to the issuer.

The notes will be offered only to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S. They have not been registered under the Securities Act and cannot be sold in the U.S. without registration or an applicable exemption.