Why Did Cipher Mining Stock Tumble 6% Pre-Market Today?

• The company’s wholly owned subsidiary, Cipher Compute LLC, plans to issue senior secured notes due in 2030.
• Cipher said proceeds from the debt issuance will go toward the development of its Barber Lake Facility.
• The Texas-based Barber Lake Facility is a part of Cipher Mining’s ten-year agreement with Fluidstack.

Cipher Mining Inc. (CIFR) on Tuesday announced plans to raise $1.4 billion through a private debt offering to help finance the construction of a new high-performance computing site in Texas. 

The company’s wholly owned subsidiary, Cipher Compute LLC, plans to issue senior secured notes due in 2030 to qualified institutional buyers under Rule 144A of the Securities Act. 

Financing The Barber Lake Facility

Cipher said proceeds from the debt issuance will go toward the development of its Barber Lake Facility, a data center located near Colorado City, Texas. 

The site will focus on high-performance computing (HPC) infrastructure, an increasingly critical component for artificial intelligence, blockchain, and cloud applications. 

Barber Lake Facility is a part of Cipher Mining’s ten-year agreement with Fluidstack, an artificial intelligence cloud platform provider. Under the terms of the 10-year colocation partnership, Cipher will allocate 168 megawatts (MW) of dedicated IT power, supported by up to 244 MW in total infrastructure capacity.

Following the announcement, Cipher Mining stock traded over 6% lower in Tuesday’s premarket. However, on Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘neutral’ territory the previous day. Message volume shifted to ‘high’ from ‘normal’ levels in 24 hours. 

Security And Guarantees For The Notes

The newly issued notes will be backed by first-priority liens on substantially all the assets of Cipher Compute LLC and its guarantor, Cipher Barber Lake LLC, a direct subsidiary of the issuer. 

The debt will also be secured by equity interests in the issuer held by Cipher Songbird LLC and a designated lockbox account from Fluidstack USA II Inc.

Cipher Mining stock has gained over 390% in 2025 and over 3515 in the last 12 months. 

Also See: Why Did SPOT Stock Rise 7% Pre-Market Today?

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