Cipher Digital Drops Over 12% After Announcing $850M Convertible Note Offering
On October 13, Cipher Digital (NASDAQ: CIFR) dropped over 12.77%, closing at $11.34 after announcing a plan to raise $850 million through convertible notes due in 2032. The offering includes an option for holders to invest up to an additional $150 million, potentially increasing the total capital raised to $1 billion. Cipher also exchanged its existing 1.75% convertible notes with private transactions that could dilute shareholder value over time. The stock's trading volume surged by about 257%, reaching 128.6M shares traded for the day, significantly above its three-month average of 33.2M. Cipher Digital has expanded its share count from 250 million to 414 million over five years and is positioned in high-performance computing growth amid rising AI demand. The broader market saw modest declines with the S&P 500 down 0.02% at 7,805 and the Nasdaq Composite falling by 0.15%. Peers like MARA Holdings (MARA) also declined.
