Black Pearl Compute, the AI-focused subsidiary of the bitcoin mining firm Cipher Mining (Nasdaq: CIFR), has attracted massive demand for its $2 billion junk bond sale floated on Tuesday — to the tune of $13 billion of orders, according to Bloomberg.
The funding will help finance the construction of the Black Pearl data center in Texas, which was leased to Amazon Web Services for at least 15 years in November. That AWS deal is valued at around $5.5 billion in total contracted revenue for 300 MW of capacity.
This outsized interest in Cipher’s debt raise comes as crypto mining firms continue to diversify into the high-performance computing sector and amid pressing demand for AI infrastructure.
Mining firms have collectively raised billions of dollars in debt financing to fund site acquisitions, facility retrofitting, and other capital-intensive AI projects. Last year, for instance, Galaxy Digital raised $1.4 billion while TeraWulf sought $3 billion.
In September, Cipher signed a 10-year, 168 MW lease with FluidStack that could yield up to $7 billion while proposing a private offering of $1.1 billion in convertible senior notes maturing in 2031. That deal was backed by Google, with the internet giant taking a 5.4% stake in Cipher. FluidStack signed a similar Google-supported deal with TeraWulf.
Black Pearl’s new five-year bonds, priced on Wednesday, will yield 6.125%, according to Bloomberg, citing an anonymous source. The funds will also be used to reimburse Cipher approximately $232.5 million for its prior equity contributions to Cipher Black Pearl, among other corporate needs.
The senior notes will be secured by first-priority liens on “substantially all assets of the Issuer and the Guarantors” and Black Pearl’s equity interests. Bloomberg noted bonds in the BB junk bond range are yielding an average 5.56%.
CIFR shares closed down 12.36% on Wednesday to $14.25 amid a continuing selloff in crypto tokens and equities, according to The Block’s data pages. Cipher is the fourth-largest bitcoin mining firm by market capitalization.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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