Cipher Mining's AI Subsidiary Attracts $13 Billion Demand for Junk Bonds

Bitcoin mining company Cipher Mining's AI subsidiary, Black Pearl Compute, has garnered significant interest in its $2 billion junk bond sale, with demand reaching $13 billion. According to PANews, the funds raised will be allocated to the construction of the Black Pearl data center in Texas, which was leased to Amazon Web Services (AWS) last November for a minimum of 15 years, with total contract revenue expected to reach $5.5 billion. The newly issued five-year bonds were priced on Wednesday with a yield of 6.125%. The proceeds will also be used to repay Cipher's previous equity investment of approximately $232.5 million in Black Pearl, among other corporate needs. The bonds are secured by a first-priority lien covering nearly all assets of the issuer and guarantors. Cipher Mining has previously entered into substantial agreements with FluidStack and Google, indicating a trend of cryptocurrency mining companies diversifying into high-performance computing. However, Cipher's stock fell by 12.36% on Wednesday, closing at $14.25, amid ongoing sell-offs in cryptocurrencies and related stocks. Currently, Cipher ranks as the fourth-largest Bitcoin mining company by market capitalization.