Cipher Mining raises $2B for AWS data center amid crypto weakness
Senior secured notes will fund Black Pearl facility tied to $5.5 billion Amazon partnership as sector faces headwinds
Cipher Mining Inc. announced a $2 billion offering of senior secured notes due in 2031 on Tuesday, a significant capital raise that will finance the construction of its Black Pearl high-performance computing data center as the company pivots from cryptocurrency mining to artificial intelligence infrastructure.
The proposed private offering, announced via GlobeNewswire, will see the notes issued by Black Pearl Compute LLC, a wholly-owned subsidiary, and offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S. Proceeds will fund the remaining construction costs of the Black Pearl Facility in Wink, Texas, reimburse $232.5 million in prior equity contributions, establish debt service reserves, and cover offering expenses.
The financing comes at a challenging moment for the cryptocurrency sector. Galaxy Digital Holdings, a crypto-focused financial services firm, is expected to report a significant earnings miss on Tuesday, with analysts forecasting negative earnings per share between -$0.779 and -$1.24 for its fourth quarter. The broader crypto market has experienced weakness amid sustained outflows from Bitcoin ETFs and Bitcoin's inability to reclaim key resistance levels.
Cipher Mining's strategic shift toward AI infrastructure began in November 2025 when the company secured a 15-year, $5.5 billion lease agreement with Amazon Web Services to provide 300 MW of computing capacity specifically for AI workloads. The Black Pearl facility, which became operational in 2025, boasts a total power capacity of 300 MW spread across 70 acres, with Phase 1 delivering 150 MW. The data center is equipped with both air-cooled (250 MW) and liquid-cooled (50 MW) systems designed to support high-performance computing operations.
Under the terms of the AWS partnership, rent payments are scheduled to commence in August 2026, with the full 300 MW of capacity expected to be delivered by the fourth quarter of 2026. The agreement represents a transformational pivot for Cipher Mining, which had previously focused its 300 MW facility on Bitcoin mining operations with an approximate operating hashrate of 10.1 EH/s.
The $2 billion debt offering represents approximately 32% of Cipher Mining's current $6.3 billion market capitalization. The notes will be fully and unconditionally guaranteed by Cipher Black Pearl LLC and 11786 Wink LLC, secured by first-priority liens on substantially all assets of the issuer and guarantors. Cipher will also provide a customary completion guarantee, committing to fund the issuer if note proceeds are insufficient to complete the facility on time.
Analysts have maintained an overwhelmingly positive outlook on Cipher Mining despite the crypto sector's headwinds. The company currently commands an average analyst target price of $27.54, with 13 analysts covering the stock rating it either a Strong Buy or Buy, and none recommending Hold or Sell, according to market data. This bullish sentiment has been driven by strong demand for data center capacity and the company's significant AWS agreement.
Cipher Mining's expansion plans extend beyond Black Pearl. The company has also announced the development of a new 1-gigawatt site named "Colchis" in West Texas, targeting energization in 2028. Cipher expects to hold approximately 95% equity ownership in the Colchis joint venture and has secured a 1-GW direct connect agreement with American Electric Power.
The debt financing marks a significant step in Cipher Mining's transition from a pure-play Bitcoin miner to a diversified data center infrastructure provider. By leveraging secured debt rather than equity dilution to fund its AI ambitions, the company is positioning itself to capture the growing demand for high-performance computing capacity while preserving shareholder value—a strategy that analysts have characterized as consistent with the company's broader financing approach.
Shares of Cipher Mining were trading at $15.81 in pre-market activity Tuesday, down approximately 0.9%, giving the company a market capitalization of roughly $6.3 billion. The stock has traded in a 52-week range of $1.86 to $25.52, reflecting both the volatility of the cryptocurrency sector and investor enthusiasm for the company's AI infrastructure pivot.