Cipher Mining's Black Pearl Compute to Offer $2 Billion in Senior Secured Notes for HPC Facility in Texas
Cipher Mining Inc.'s subsidiary, Black Pearl Compute LLC, plans to offer $2 billion in senior secured notes to fund the construction of a 300 MW high-performance computing facility in Wink, Texas. The financing will also reimburse Cipher approximately $232.5 million for previous equity contributions, as the company transitions from Bitcoin mining to HPC amid market volatility, securing long-term leases with major tech firms, including a 15-year agreement with Amazon Web Services.
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Cipher Mining Inc. announced that its subsidiary, Black Pearl Compute LLC, will offer $2 billion in senior secured notes due in 2031. The funds will finance the remaining construction costs of the Black Pearl Facility, a 300 MW high-performance computing data center in Wink, Texas, and reimburse Cipher approximately $232.5 million for prior equity contributions.
The notes will be guaranteed by two wholly-owned subsidiaries and secured by first-priority liens on assets. Cipher Mining, which is shifting focus from Bitcoin mining to HPC due to declining profitability, has secured long-term leases with major tech companies, including a 15-year agreement with Amazon Web Services for 300 MW capacity. The company aims to complete the Black Pearl Facility and diversify its revenue streams as the Bitcoin market remains volatile.
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