Cipher Digital raises $810 million in junk bonds to build another Amazon data centre in Texas
Cipher Digital has successfully raised $810 million through a junk-bond sale to finance the construction of a new data center in West Texas, which will be leased to Amazon for a period of 15 years. The bonds are expected to yield approximately 6.25 percent and will cover the remaining costs of Cipher's Stingray Facility, a significant computing campus with a capacity of 100 megawatts.
WPN Brief
- What Happened
Cipher Digital has successfully raised $810 million through a junk-bond sale to finance the construction of a new data center in West Texas, which will be leased to Amazon for a period of 15 years. The bonds are expected to yield approximately 6.25 percent and will cover the remaining costs of Cipher's Stingray Facility, a significant computing campus with a capacity of 100 megawatts.
- Why It Matters
This financing is crucial for Cipher Digital as it enables the completion of a major infrastructure project that aligns with the growing demand for data processing and storage solutions, particularly from large tech companies like Amazon.
- The Bigger Picture
The trend of utilizing high-yield bonds for financing in the tech sector is becoming increasingly prominent, as evidenced by similar bond offerings from other companies. This reflects a broader shift in how data infrastructure is being funded, with significant investments being made to support the expanding needs of AI and cloud computing services.
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2 reports across the wire
Source: a CoreWeave-tied data center raised $900M via five-year junk bonds, priced at par to yield 7.5%, as the sector increasingly turns to high-yield bonds (Gowri Gurumurthy/Bloomberg)
A data center associated with CoreWeave Inc. has successfully raised $900 million through a five-year junk bond offering, priced at par to yield 7.5%. This move reflects a growing trend among companies in the sector to utilize high-yield bonds as a means of financing.
Report: in May, supply of unsecured bonds from hyperscalers hit $155B YTD, 45%+ more than 2025's total issuance; some AI-infra bond sales are 4x oversubscribed (Caleb Mutua/Bloomberg)
In May, the supply of unsecured bonds from hyperscalers reached $155 billion year-to-date, marking a 45% increase compared to the total issuance in 2025. Notably, some bond sales related to AI infrastructure were reported to be oversubscribed by four times. This surge indicates a growing demand for financing in the AI sector.