Cipher Digital Inc (NASDAQ:CIFR) plans to raise $810 million through a private offering of senior secured notes due 2031, issued by a subsidiary, to back its data center operations.
The notes will be offered by Stingray Compute LLC, a wholly owned subsidiary of Cipher, to qualified institutional buyers under Rule 144A and to investors outside the United States under Regulation S of the Securities Act, the New York-based company said.
Issuing the debt through a subsidiary and securing it against assets concentrates the borrowing around Cipher's data center infrastructure rather than the parent company. Senior secured notes due 2031 would give the company a fixed, multi-year source of funding, with the coupon and final size to be set when the notes price based on investor demand.
The raise underscores the capital required to build and run industrial-scale data centers, which has drawn operators in the sector to the debt market to fund construction.
Cipher Digital describes itself as a developer, owner and operator of industrial-scale data centers. The company said the timing and completion of the notes offering remain subject to market conditions.