Bitcoin mining company Cipher's AI subsidiary's junk bond sale garners $13 billion in subscriptions

PANews February 5 News, according to Bloomberg, Bitcoin mining company Cipher Mining (Nasdaq: CIFR) and its AI subsidiary Black Pearl Compute attracted up to $13 billion in demand for a $2 billion junk bond sale on Tuesday. The proceeds will be used to build the Black Pearl data center in Texas, which was leased to Amazon Web Services (AWS) in November last year for at least 15 years, with a total contract revenue expected to reach $5.5 billion. Black Pearl’s newly issued five-year bonds priced on Wednesday at a yield of 6.125%, and the funds will also be used to repay Cipher’s previous equity investment of approximately $232.5 million in Black Pearl and other company needs. The bonds are secured by a first-priority lien covering almost all of the issuer’s and guarantor’s assets. Cipher has previously reached multiple high-value partnership agreements with FluidStack and Google, demonstrating a trend of diversification into high-performance computing. However, Cipher’s stock fell 12.36% on Wednesday, closing at $14.25, amid ongoing sell-offs in cryptocurrencies and related stocks. Cipher is currently the fourth-largest Bitcoin miner by market capitalization.