Cipher to Raise $333 Million More for Barber Lake Build-Out Amid Fluidstack HPC Expansion
Cipher Mining plans to raise an additional $333 million in senior secured notes and has signed a new 10-year HPC colocation agreement with Fluidstack.
Cipher said on Thursday that the latest planned offering will be a further tranche of the company’s 7.125% senior secured notes. The notes will carry the same terms as the $1.4 billion issuance completed on Nov. 13. Upon closing, Cipher would have $1.733 billion outstanding under the 2030 notes program.
Proceeds will finance the construction of additional facilities at Barber Lake, which will bring the campus in Texas to full 300 megawatt high-performance computing capacity. The notes will be guaranteed by Cipher Barber Lake LLC and secured by a similar collateral package used for the original issuance, including a Google pledge of its Cipher warrants prior to completion of the initial construction phase. Cipher will also amend and restate its completion guarantee to cover the expanded development scope.
Alongside the new financing plan, Cipher unveiled an expanded colocation agreement with Fluidstack, which will now lease the entire 300 MW of critical IT load at Barber Lake. Under the new arrangement, Cipher will deliver an additional 39 MW of critical load supported by up to 56 MW of gross capacity.
Cipher noted that the expanded deal represents about $830 million in contracted revenue over the initial 10-year term, and up to $2 billion if both five-year extension options are exercised. Combined with previous arrangements, the total potential contract value with Fluidstack could reach roughly $9 billion.
The company expects to fund its portion of the build-out through the incremental notes offering and roughly $118 million in additional equity contributions.
The move comes during a volatile period for Cipher’s stock. Shares rose about 10% in pre-market trading on Thursday after the announcements, though the price remains down roughly 22% from its October peak amid a broader sell-off in crypto and equity markets.
Cipher’s continued build-out follows a wave of HPC-focused financings across the sector. Earlier this year, Terawulf raised more than $3 billion in senior secured notes to fund its own AI-compute expansion, underscoring the accelerating shift by Bitcoin miners into long-term infrastructure for AI workloads.
