Cipher Mining introduced a $2 billion provide from its subsidiary Black Pearl Compute LLC to construct a big information heart in Texas.
The funds shall be used to construct Cipher Mining's Black Pearl facility. The power has a complete energy capability of 300 megawatts (MW).
Why is the main focus of crypto mining shifting from Bitcoin to high-performance computing?
Cipher Mining Co., Ltd. introduced The corporate's wholly-owned subsidiary, Black Pearl Computing LLC, introduced that it plans to challenge $2 billion in senior secured notes to fund its AI ambitions. The bonds are due in 2031 and shall be offered in a personal placement to giant institutional traders.
Cipher began as a Bitcoin miner, however has now rebranded as a frontrunner in industrial-scale information facilities for top efficiency computing (HPC). The $2 billion shall be used to pay for the remaining development of the Black Pearl facility in Wink, Texas.
It should even be used to reimburse the roughly $232.5 million that Cipher Mining spent on the undertaking. The remaining shall be used for public debt service reserves and numerous charges.
The Black Pearl facility is a vital a part of Cipher's future. The location is 70 acres with a complete energy era capability of 300 megawatts (MW). Section I of the undertaking, delivering 150 MW, was commissioned in 2025.
Cipher's determination to develop into HPC infrastructure comes as Bitcoin mining turns into much less worthwhile. In early 2026, the worldwide Bitcoin hashrate reached an all-time excessive, making it more durable and dearer for miners to earn rewards.
Moreover, Bitcoin's “hash value,” which measures the each day income miners earn per unit of energy, continued to say no all through the primary quarter of 2026.
The halving occasion in 2024, which minimize Bitcoin rewards in half, created a “tight margin setting” and plenty of public mining firms realized that relying solely on Bitcoin in 2025 and 2026 was too dangerous.
Constructing information facilities for HPC permits Cipher Mining to enter into long-term lease agreements with main expertise firms corresponding to Amazon, Google, and Microsoft.
In late 2025, the corporate signed a big 15-year lease with Amazon Internet Companies (AWS) for 300 MW of capability. The deal is estimated to generate $5.5 billion in income over the interval. Cipher additionally has a $3 billion internet hosting take care of Google-backed Fluidstack.
Firms like TeraWulf and Core Scientific are additionally pivoting to AI infrastructure. TeraWulf not too long ago expanded its Texas facility to handle AI workloads, and Core Scientific signed a multibillion-dollar contract with CoreWeave.
These firms at the moment are considered by traders as conventional information heart operators and sometimes commerce at greater valuations as a result of their revenues are extra predictable.
What’s the monetary danger of a $2 billion bond challenge?
The “issuer” of the debt is Black Pearl Compute LLC. The debt is “precedence secured,” that means the lender has first precedence declare in opposition to the asset if issues go south.
The bonds are assured by two different subsidiaries that personal precise land and gear in Texas: Cipher Black Pearl LLC and 11786 Wink LLC. This debt is secured by liens on considerably all the belongings of those entities. Basically, the Black Pearl Facility itself serves as collateral for the $2 billion mortgage.
Mum or dad firm Cipher Mining additionally promised lenders that if $2 billion shouldn’t be sufficient to finish the Texas facility, it’s going to present the extra funds wanted to finish the work on time.
crypto inventory. Supply: Google Finance
As of February 2026, Cipher's inventory has returned 156% over the previous 12 months, regardless of its excessive debt and up to date inventory value decline. Though the most recent quarterly report from late 2025 reveals a internet loss, administration emphasised that “adjusted earnings” stay constructive because the Bitcoin mining enterprise continues to be producing money.
The Notes are provided underneath Regulation 144A and Regulation S and are due to this fact accessible solely to Certified Institutional Purchasers and sure individuals exterior the US.
