Cipher Digital Inc.
(NASDAQ:CIFR) stock is under heavy pressure Wednesday as investors react to the company's newly priced $810 million debt offering and a broader sell-off across technology and cryptocurrency-linked stocks.
Debt Financing Weighs On Sentiment Cipher Digital announced that its wholly-owned subsidiary, Stingray Compute LLC, priced a $810 million offering of 6% senior secured notes due 2031.
According to the announcement, the notes are priced at 99.750% of their principal amount in a private placement expected to close on June 15.
Cipher disclosed that it will provide a customary completion guarantee with respect to the Stingray Facility, under which it will fund the Issuer as necessary to ensure the timely completion of the Stingray Facility.
