Cipher Digital, a Bitcoin miner pivoting to artificial intelligence, raised $850 million through a convertible bond offering as its shares plunged more than 52% over the past year. The company also exchanged $165.9 million in convertible notes due 2030 for 40.7 million newly issued shares, significantly diluting existing investors. The stock closed at $8.98 on October 16, down 10.6% for the session. Cipher spent $89.7 million on capped-call transactions to limit potential dilution from future conversions. While the Black Pearl data center began delivering capacity in August, two months ahead of schedule, convertible notes allowing bondholders to demand repayment in November 2030 increase pressure on Cipher to generate sufficient rental income before that deadline.
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