Record Demand of $13 Billion for Cipher Mining's AI Bonds

SchroedingerMiner · 2026-02-13T10:19:39+00:00

Cipher Mining attracted a record demand by issuing bonds of $2 billion to its AI subsidiary, Black Pearl Compute. The capital will be invested in a data center in Texas, in partnership with AWS, despite a 12.36% decline in the company's stock.

SchroedingerMiner

2026-02-13 10:19:39

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A Cipher Mining, a well-established Bitcoin mining company in the market, managed to attract massive demand for the issuance of bonds by its artificial intelligence-focused subsidiary, Black Pearl Compute. The $2 billion junk bond offering received orders exceeding $13 billion, reflecting the growing interest of the financial market in companies that combine cryptocurrency mining with high-performance computing infrastructure.

Resource Allocation and Partnership with AWS

The funds raised will primarily be used for the construction and operation of the Black Pearl data center located in Texas. According to disclosed information, the facility was leased to Amazon Web Services (AWS) through a long-term contract of at least 15 years, with total revenue estimated at $5.5 billion. The five-year bonds were priced with a yield of 6.125% and also cover the repayment of Cipher’s previous investment of approximately $232.5 million in Black Pearl, as well as other corporate expenses. The bonds are secured with first priority over virtually all of the company’s assets.

Strategic Expansion into High-Performance Computing

Cipher Mining’s move to diversify its operations goes beyond the partnership with AWS. The company has already signed significant agreements with FluidStack and Google, demonstrating a clear strategy to position itself in sectors with increasing demand for computing infrastructure. This type of expansion reflects a trend among cryptocurrency mining companies to migrate into complementary technology segments.

Stock Decline Contrasts with Fundraising Success

Despite the success in attracting demand for the bond issuance, Cipher Mining’s shares fell 12.36% in recent trading, closing at $14.25. This movement occurs amid broader volatility in cryptocurrency markets and related company stocks. Currently, Cipher Mining ranks fourth among the largest Bitcoin miners by market capitalization, demonstrating its relevance in the sector despite short-term challenges.

BTC3,57%

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