Cipher Digital (CIFR) fell 14% to $11.20 in morning trading after announcing an $850 million private offering of convertible senior notes and a concurrent exchange of older debt for common shares. The exchange brings shareholder dilution forward, since each share issued expands the base over which future earnings are spread, rather than waiting for conversion or maturity. Applied Digital (APLD), another developer leasing data centers to hyperscale tenants, dropped 5% to $22.11. Bulls point to signed hyperscale leases, with the Black Pearl campus starting rent in August and Barber Lake expected to start in October. Skeptics worry that rising debt and a higher share count raise the bar lease revenue must clear, especially if campus delays occur.
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