Black Pearl Compute LLC, a subsidiary of Bitcoin miner Cipher Mining, has received $13 billion in orders for a $2 billion junk bond sale to fund a massive AI data centre in Texas. The offering was significantly oversubscribed as investors scrambled for a piece of the project, which is backed by a 15-year lease agreement with Amazon Web Services (AWS) valued at approximately $5.5 billion.
$13B of demand for $2B of CIFR bonds
Cost of capital coming down for the best AI data center developers
Yeah, sure, bears, we are headed lower. See you at $42. pic.twitter.com/enGoKGQVvU
— Mike Alfred (@mikealfred) February 4, 2026
The senior secured notes, priced on February 4, 2026, carry a 6.125% yield and mature in 2031. Cipher Mining plans to use the capital to complete the construction of the 300-megawatt (MW) “Black Pearl” facility in Wink, Texas. The company also intends to reimburse itself for roughly $232.5 million in prior equity contributions used to kickstart the project.
Crypto miners pivot toward high-performance computing
The overwhelming demand for these bonds underscores a broader shift within the blockchain industry as firms diversify into high-performance computing (HPC). With Bitcoin mining rewards becoming more competitive, companies like Cipher Mining are leveraging their access to massive power grids to host AI infrastructure for “hyperscalers” like Amazon and Google.
The Black Pearl facility is specifically designed for high-density AI workloads. Under the terms of the deal, AWS has agreed to cover construction costs that exceed $9.5 million per megawatt, providing a safety net for Cipher against inflationary building costs. This follows a separate agreement between Cipher and FluidStack, a Google-backed firm, which is expected to generate up to $7 billion in revenue over the next decade.
Balancing expansion with market volatility
Despite the successful debt raise, Cipher Mining’s stock (NASDAQ: CIFR) faced a sharp 12.36% decline on Wednesday, closing at $14.25. The drop coincided with a wider retreat in both the cryptocurrency and equity markets. Analysts suggest that while the transition to AI data centres offers a more stable revenue model than Bitcoin mining, investors remain cautious about the high capital expenditure required for such projects.
The pivot to AI is becoming a standard survival strategy for large-scale miners. Last year, industry peers like TeraWulf and Galaxy Digital raised billions in similar capital-intensive rounds to repurpose their respective courses. These long-term leases provide the predictable cash flow that traditional Bitcoin mining often lacks, helping firms navigate the “halving” cycles and energy price fluctuations.
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