Cipher Digital Raises the Stakes With an $850 Million Convertible as Bitdeer Adds 60MW, Putting the PRISM Crypto Mining Index’s AI Build-Out on Display

Cipher Digital Inc. (NASDAQ: CIFR) launched a proposed $850 million private offering of 0.00% convertible senior notes due 2032 on Tuesday, and the stock dropped roughly 12% to 14% in early trading as investors weighed the dilution. On the same morning, fellow PRISM Crypto Mining Index constituent Bitdeer Technologies Group (NASDAQ: BTDR)signed an eight-year data center services agreement for a new 60MW facility in Malaysia. Taken together, the two announcements show what it costs to turn a bitcoin miner into an AI infrastructure company, and how quickly the index’s leaders are moving to pay that cost.

Key Points

• Cipher Digital (CIFR) proposed $850 million of 0.00% convertible senior notes due November 1, 2032, plus a 13-day option for buyers to take up to $150 million more.
• Proceeds will fund capped calls, more equity in the Barber Lake project, the near-term HPC pipeline, and new development sites. Cipher also plans to exchange part of its 1.75% notes due 2030 for common stock.
• Bitdeer (BTDR) added the 60MW A103 facility at its Cyberjaya campus, which lifts secured capacity to about 333.5MW, roughly 95% of its target of up to 350MW by Q1 2028.
• Both moves extend a trend PRISM MarketView has tracked all year: crypto miners turning power and land into contracted AI and high-performance computing capacity.

Cipher Digital (CIFR) Taps the Convertible Market to Fund Barber Lake and Beyond

Cipher’s notes carry no regular interest, and the principal does not accrete. Before August 1, 2032, holders can convert only under specified conditions; after that date, they can convert at any time until shortly before maturity. Cipher may settle conversions in cash, stock, or a mix of both. In addition, the company can redeem the notes for cash on or after November 5, 2029, if its share price stays above 130% of the conversion price for a set period. Holders, meanwhile, can require a repurchase on November 1, 2030.

The use of proceeds points straight at the data center business. Cipher plans to fund capped call transactions, which limit dilution up to a cap, and to put additional equity into Barber Lake, its second campus. Beyond that, the money will support the HPC build-out across its near-term pipeline and help it add development sites. Cipher also expects to swap part of its outstanding 1.75% convertible notes due 2030 for shares of common stock.

That concurrent exchange explains much of Tuesday’s selling. Converting old debt into stock now brings dilution forward instead of leaving it for 2030. Notably, the broader data center group traded only slightly lower, which suggests investors were reacting to Cipher’s financing terms rather than to a sector-wide pullback. Final pricing, including the conversion rate, will show how much new stock the transaction ultimately creates.

Bitdeer (BTDR) Grows Its Malaysian AI Campus With the 60MW A103 Facility

Bitdeer’s AI unit signed an eight-year data center services agreement for A103, a 60MW facility on its existing Cyberjaya campus alongside A101 and A102. As a result, the combined campus is expected to deliver about 71.5MW of AI cloud capacity, with A103 designed for liquid-cooled, rack-scale systems, including NVIDIA’s Vera Rubin platform. Energization is expected in Q1 2028.

The deal follows a busy stretch for the company. Just last week, Bitdeer signed a 10-year agreement for its 67MW A901 site in Malaysia, which brought secured capacity to about 273.5MW. A103 now pushes that figure to roughly 333.5MW across Malaysia, Norway, and the United States. Last month, PRISM MarketView reported that Bitdeer AI sold out its initial Malaysia data center capacity, securing more than $800 million in five-year AI cloud revenue.

Investors should note what A103 is not, however. Bitdeer has not announced a customer offtake commitment, a contract price, or a construction budget for the facility. The company estimates its active AI cloud pipeline at more than $10 billion, but it describes that figure as opportunities under discussion, not backlog or revenue.

What It Means for the PRISM Crypto Mining Index

The PRISM Crypto Mining Index has split into two camps. Miners that moved into AI and HPC hosting, including Cipher, TeraWulf (NASDAQ: WULF), and Core Scientific (NASDAQ: CORZ), have far outpaced pure-play bitcoin miners since the index’s January 2024 inception. Just yesterday, PRISM MarketView covered reports that IREN landed Anthropic as an AI cloud customer, and the same pivot drove the index’s 13.89% jump this summer as miners converted power into AI contracts.

Tuesday’s news shows both sides of that story. Bitdeer is adding capacity at a site where it already has power, cooling, and operating experience. Cipher, by contrast, is reminding shareholders that building AI campuses takes enormous capital, and that some of the bill lands on the equity. The pivot creates value only when contracted megawatts turn into rent-paying megawatts on schedule. The constituents that finance that transition most efficiently will likely set the pace for the index. The same theme also runs through the PRISM AI Datacenter and Infrastructure Index, where power-rich developers compete for the same hyperscale tenants.

What to Watch

• Cipher’s final pricing: The conversion rate, the capped call cap, and the size of the 2030 note exchange will set the true dilution.
• Barber Lake progress: The campus is Cipher’s next major source of rent, and the new equity is aimed squarely at it.
• Bitdeer’s A103 customer: A named tenant or offtake commitment would turn new capacity into contracted revenue.
• Index divergence: Look for whether the gap between AI-focused miners and pure-play bitcoin miners keeps widening into Q3 earnings season.