Cipher to Issue $1.40 billion Bonds to Build Texas HPC Data Center

Cipher Mining plans to raise $1.40 billion through a private bond issue to fund the construction of its high-performance computing (HPC) facility in Barber Lake, Texas, following a leasing partnership with AWS.
Cipher said Tuesday that its subsidiary, Cipher Compute LLC, intends to issue a $1.40 billion senior secured note due 2030 to qualified institutional investors under Section 144A of the Securities Act. The proceeds raised will be used for the construction of the Barber Lake data center near Colorado City, Texas. The note will be guaranteed by Cipher Barber Lake LLC and secured by a senior pledge of virtually all of the assets of the issuer and guarantor, as well as equity held by the parent company. The mortgage package also includes a lockbox account set up by Fluidstack USA II Inc., as well as warrants pledged by Google LLC to subscribe to Cipher stock pending the completion of the facility.
The debt financing follows Cipher's announcement on Monday of a roughly $5.50 billion, 15-year AWS lease agreement to provide 300 trillion watts of turnkey data center capacity to support AI workloads starting in 2026. Cipher has already partnered with Fluidstack and Google on HPC, demonstrating that the bitcoin miner is accelerating its transition to an AI and cloud hosting business.