The Texas company Cipher Mining has announced the issuance of convertible senior bonds totaling $150 million. This financial initiative is planned to be implemented with the possibility of expanding to $172.5 million, and the funds will be directed towards the construction of the Black Pearl data center and the procurement of equipment on favorable terms.
This is reported by Finway
According to the terms of the agreement, the closing of the bond placement is expected on May 22, 2025. The company has also introduced a 30-day option for an additional bond issuance of up to $22.5 million. The securities can be converted into Cipher shares at a price of $4.45 per unit.
The majority of the funds raised will be spent on completing the first phase of the Black Pearl construction, which is a strategic project in the company’s infrastructure portfolio. Additionally, funding will go towards purchasing mining rigs at a discounted price, as well as covering associated expenses and logistics.
Development Strategy and Collaboration with Bitmain
As part of its new strategy, Cipher Mining has entered into an agreement with equipment manufacturer Bitmain, which will expedite the delivery of mining rigs by June 23, 2025. In exchange for early payment, the company received a 10% discount and option contracts related to the Bitcoin rate.
It is also worth noting that in April, Cipher sold 1,261 BTC, exceeding its annual production volume, resulting in the company’s cryptocurrency reserves decreasing to 855 BTC.
Prospects for Hashrate Expansion
Company representatives emphasized that despite the challenging market situation in the mining industry, Cipher Mining continues to expand its capabilities. The company plans to introduce an additional 2.5 EH/s and achieve a hashrate of 16 EH/s by the end of the second quarter of 2025, utilizing new equipment, expanded infrastructure, and raised funding.
“Amid the challenging market situation for the mining industry, Cipher continues its expansion,” company representatives stated.