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Cipher Digital Signs 15-Year Hyperscale Lease, Secures $200 Million Credit Line

The paired moves signal a faster shift to contract-backed AI data centers under strict liquidity and market-cap rules.

Overview

  • Cipher Digital executed its third AI campus deal, a 15-year lease with an investment‑grade hyperscale client to build a high‑performance computing data center at an existing site.
  • The company closed a $200 million revolving credit facility led by Morgan Stanley with Goldman Sachs, JPMorgan, Wells Fargo, Banco Santander, and Sumitomo Mitsui in the bank group.
  • The credit line was undrawn at closing and includes a $50 million accordion that could expand total capacity to $250 million if tapped.
  • Pricing is set at SOFR plus 1.25% to 1.75% with step‑downs tied to the ratio of total debt to market value, and the facility matures in March 2030.
  • Covenants require quarterly minimum liquidity of $100 million to $200 million and a $3 billion market value at each draw, which could curb access if cash flows or the share price weaken.