Cipher Digital (CIFR.US) intends to issue $810 million junk bonds for the construction of Amazon.com, Inc. (AMZN.US) AI data center project.

Cipher Digital (CIFR.US) is planning to raise $810 million through the issuance of high-yield bonds for the construction of an artificial intelligence data center project in collaboration with Amazon.com, Inc. (AMZN.US). According to sources, the funds raised from this bond issuance will primarily be used to pay for the remaining construction costs of the Stingray data center project. The project is located in western Texas, and once completed, it will be leased to Amazon.com, Inc. under a 15-year long-term lease agreement. This financing once again highlights the high-yield bond market as an important source of funding for the construction of artificial intelligence infrastructure. As tech giants such as Amazon.com, Inc., Alphabet Inc. Class C parent company Alphabet (GOOG.US, GOOGL.US) continue to expand their AI computing demands, these companies are providing stable cash flow expectations to smaller developers through long-term data center lease agreements, while also helping related businesses obtain billions of dollars in financing support from the debt market. Formerly known as Cipher Mining, Cipher Digital is a Bitcoin mining company. With the rise of AI data center construction boom, the company has been actively transitioning to high-performance computing and data center businesses in recent years. In February of this year, Cipher raised $2 billion in financing through the bond market for the construction of the Black Pearl data center project in Texas. The deal was well-received in the market with subscription orders exceeding $13 billion, demonstrating investors' strong interest in AI infrastructure assets. Compared to traditional cryptocurrency mining operations, data center projects leased long-term to large tech companies such as Amazon.com, Inc. offer more stable income sources and higher valuation premiums, which is a key reason why capital markets are willing to continue providing financing support. The bond issuance is jointly underwritten by Morgan Stanley, Goldman Sachs Group, Inc., Wells Fargo & Company, Spanish Banco Santander S.A. Sponsored ADR, and SMBC Nikko Securities. It is worth noting that on the same day Cipher initiated financing, Amazon.com, Inc. was also introducing plans for a bond issuance in the Canadian market with a minimum size of $7 billion CAD, indicating that tech giants' capital expenditures in the AI infrastructure sector are continuing to expand.