BUZZ - Cipher Digital shares fall due to proposed $850 million convertible note issuance

October 13 - ** Cipher Digital (CIFR.O) pre-market share price fell by 12.46% to $11.38.

** This AI data center operator announced plans for a private offering, issuing $850 million in convertible senior notes due 2032.

** The notes have a coupon rate of 0%, meaning that CIFR does not need to pay periodic interest on this debt.

** Initial subscribers are granted a 13-day option to additionally purchase up to $150 million worth of bonds—CIFR.

** The funds raised will be used to finance capped call option transactions, investment in the Barber Lake project, high-performance computing (HPC) expansion, and general corporate purposes.

** The capped call option transactions are designed to mitigate the dilution effect for shareholders that may result when new bonds are converted into shares, subject to a cap.

** As of the previous closing day, CIFR had accumulated a year-to-date decline of 11.92%.

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