Cipher Digital extends losses after $850 mln convertible bond sale

Goldman Sachs group

14/10/2026 13:01

** Data center operator Cipher Digital's CIFR.O shares down 1.6% to $11.16 before the bell on Weds as it clinches capital raise
** CIFR announces pricing private offering of $850 mln 0% convertible bonds (CBs) due Nov 1, 2032; conversion price of $15.31 set 35% above stock's last sale of $11.34 on Tues
** CIFR's stock tumbled nearly 13% to an over 1-yr low on Tues after co unveiled offering to finance investment in its Barber Lake project and fund high-performance computing (HPC) expansion
** Northland Capital Markets says in research note on Weds that CIFR disclosed Barber Lake capex increased to ~$14 mln/MW vs prior $9-$11 mln/MW guidance, raising financing and execution concerns
** "We see this as the main driver of weakness across the space yesterday, as the additional capital/over-budget spending of this magnitude was not expected. Plus, this is a very tough time to get any financing done," Northland writes
** Morgan Stanley and Goldman Sachs acting as bookrunners for offering
** CIFR plans to use $89.7 mln of net proceeds to fund capped call transactions; cap price of $28.35 is 150% premium to stock's last close
** Alongside offering, co expects to exchange a portion of its 2030 1.75% CBs for stock
** Through Tues, stock down 23% YTD, giving co $4.7 bln market cap
** 20 of 22 analysts rate the stock "strong buy" or "buy", 2 "hold"; median PT $28, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))