Strategy (MSTR) fell 4% to $145.50, Riot (RIOT) dropped 4% to $14.94 and Cipher Digital (CIFR) slipped 3% to $9.75. Strategy's pressure stems from MSCI's new index eligibility rules, with financial tests taking effect at the November review, and the company was previously flagged as potentially ineligible, even as Bitcoin rose over 24 hours. Cipher Digital priced zero-coupon convertible notes to fund its Barber Lake data center, settling Friday. Year to date, MSTR is down 5%, CIFR down 34% and RIOT up 20%. The CoinShares mining ETF (WGMI) fell 2% while the SPDR S&P 500 ETF (SPY) rose 0.2%.
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Cipher Digital (CIFR) fell about 5% to $10.72 after pricing a private offering of $850 million in zero-interest convertible senior notes, extending a slide that followed a 13% drop in the prior session. Part of the proceeds will fund capped call transactions to limit dilution, while the rest goes to an additional equity investment in the Barber Lake data center, where an amended AI lab lease raised contracted revenue and doubled the base term. Cipher also plans to exchange part of an outstanding convertible issue for 40.7 million common shares. Peers moved lower too, with IREN down 4% to $33.37 and Applied Digital down 6% to $21.19.
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U.S. stock futures edged higher on Friday as concerns about the AI boom eased, though the S&P 500 and Nasdaq Composite were on track for weekly declines. Tesla shares rose nearly 5% premarket after the company unveiled its new Roadster, and Elon Musk said production would begin in 2028. Strategy fell 3% after MSCI announced new rules that could exclude the company from its indexes, with changes taking effect at the November review. CoreWeave dropped 3.8% to $67.10 as investors scrutinized its debt of about $50 billion, while Cohen & Steers jumped 5.8% after $1.6 billion in net inflows in the quarter. Site Centers surged 18.3% after announcing a $3.00-per-share special dividend and the sale of its Dividend Trust Portfolio stake, with net proceeds of about $32.4 million.
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