Cipher Digital shares increase by 9% following agreement with Hyperscale client for new data center.

The new 15-year hyperscale lease and $200 million in financing highlight the advancement into AI data centers.

Essential details:

• Cipher Digital (CIFR) experienced a 9% increase in pre-market trading after the previous crypto mining firm announced it has signed a 15-year lease with a hyperscale tenant to construct its third high-performance computing data center campus.
• The organization has also obtained a revolving credit facility worth up to $200 million, with an extra $50 million option to aid in expansion and improve liquidity.

Cipher Digital (CIFR) shares rose 9% in pre-market trading following the announcement of a long-term lease for a data center and the acquisition of a $200 million revolving credit facility.

The company, which rebranded from Cipher Mining in February, disclosed a 15-year lease agreement with an investment-grade hyperscale tenant for its third data center campus. Cipher will create a high-performance computing facility at an existing location, enhancing its role as a collaborator with large technology companies developing AI infrastructure.

The company’s name change reflects a strategic shift away from bitcoin production towards the establishment of industrial-scale data centers for artificial intelligence and cloud services. This transition aligns with the rapidly increasing demand for high-performance computing resources.

The revolving credit facility includes an additional $50 million accordion option. Supported by a consortium of prominent global banks, the facility offers non-dilutive capital to facilitate expansion, enhance liquidity, and finance future growth plans.