- After Cipher Mining signed a 15-year lease to build a new AI-focused HPC data center for a hyperscale tenant, the company's stock price rose.
- The company also secured a revolving credit line of up to $200 million, with the option to increase it by an additional $50 million
- The updates come as Cipher continues to move toward AI infrastructure, with the need for high-performance computing growing.
Shares of Cipher Mining Inc. (CIFR) rose in pre-market trading on Wednesday after the Bitcoin miner said it had signed a 15-year lease to build an AI-focused data center and secured new credit, which provides financial flexibility.
Cipher Mining stock was up over 6% on Wednesday morning. On Stocktwits, it was the top-trending ticker at the time of writing. The retail sentiment around CIFR improved to ‘neutral' from ‘bearish’ zone, while chatter around the crypto mining company moved to ‘normal’ from ‘low’ levels over the past day.
AI Pivot Gains Momentum
The Bitcoin (BTC) mining company said it executed its third data center campus lease with an investment-grade hyperscale tenant. As part of the deal, Cipher will build and deliver a new high-performance computing (HPC) data center at one of its current locations.
“This agreement for our third large AI campus reinforces Cipher’s position as a trusted partner to develop high-quality HPC data center infrastructure for the world’s leading companies,” CEO Tyler Page said in a statement.
A Huge Liquidity Boost
Cipher also announced a new revolving credit facility of up to $200 million, with an extra $50 million accordion option. The facility, which will be paid off in March 2030, is intended to improve liquidity, support working capital, and fund growth plans. The company said the facility was not in use when it closed.
Greg Mumford, the Chief Financial Officer, said that the deal was Cipher's first syndicated revolving credit facility.
Morgan Stanley was the lead arranger and administrative agent for the facility, along with a group of banks that includes Goldman Sachs, JPMorgan Chase, Banco Santander, Sumitomo Mitsui Banking Corporation, and Wells Fargo.
This comes as large crypto-native institutions are accumulating mining equities. As of Tuesday, Galaxy Digital (GLXY) holds over $4 million in Cipher shares with roughly 3.3 million shares.
Cipher’s stock has been up over 300% in a year.
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