Cipher Digital (NASDAQ: CIFR) has signed a 15-year lease for its third data center campus, accelerating its shift beyond Bitcoin mining into high-performance computing infrastructure.
Signed last Wednesday, the company plans to develop a new HPC data center at an existing site under the agreement. The move reflects a broader pivot toward serving artificial intelligence workloads and enterprise computing demand. Additionally, management signaled that long-term infrastructure partnerships now sit at the core of its business strategy.
Chief executive Tyler Page said the deal strengthens the company’s role as a developer of large-scale computing campuses. He indicated that Cipher continues to position itself as a partner for major global clients requiring reliable infrastructure.
The company also secured new financing to support expansion. Cipher closed a revolving credit facility worth up to USD$200 million, with an additional USD$50 million accordion option. Furthermore, the facility remains undrawn and matures in March 2030.
The interest rate ranges from the Secured Overnight Financing Rate plus 1.25 per cent to 1.75 per cent. Meanwhile, pricing may decline if the company improves its debt-to-market capitalization ratio.
Chief financial officer Greg Mumford described the credit line as a step forward in capital structure development. He added that lenders view the company’s long-term strategy with growing confidence.
Morgan Stanley (NYSE: MS) acted as administrative agent and lead arranger. Additionally, Banco Santander (BME: SAN), Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE: JPM), Sumitomo Mitsui Banking Corporation (BMV: SMFGN) and Wells Fargo (NYSE: WFC) joined the lending group.
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Demand for AI and high performance computing has leapt
The company recently rebranded from Cipher Mining to reflect its broader ambitions. In February, it sold interests in three joint mining sites and divested related equipment. Consequently, the company reduced direct exposure to Bitcoin mining operations.
Management said Bitcoin mining helped build expertise in power sourcing and large-scale development. However, the firm now focuses on enabling next-generation computing infrastructure at industrial scale.
Bitcoin mining firms began pivoting around 2022–2023 as profitability tightened. Rising energy costs, increased competition, and post-halving reward reductions compressed margins.
Meanwhile, demand for AI and high-performance computing surged, offering more stable, higher-margin revenue. Consequently, miners repurposed their power access and infrastructure toward data centers, where long-term contracts and predictable cash flow proved more attractive than volatile crypto mining returns.
Cipher still maintains some exposure to Bitcoin mining, but in a more capital-light structure. Meanwhile, it directs most new investment toward HPC and AI-focused facilities.
Other former mining companies have taken similar steps. Core Scientific (NASDAQ: CORZ), Cango (NYSE: CANG) and Bitfarms (TSE: BITF) (NASDAQ: BITF) have all moved toward AI infrastructure markets.
This shift reflects rising demand for computing power driven by artificial intelligence applications. Additionally, companies seek access to energy-intensive data centers capable of handling large-scale workloads.
Cipher’s latest agreement positions it to capture that demand as it builds out its third campus.
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