Cipher Digital (CIFR) fell 53.9% in October, versus a 0.9% dip in the S&P 500, as AI infrastructure stocks came under pressure over heavy borrowing needs. The sell-off intensified after the company raised $850 million through 0% convertible notes due 2032, with a conversion price of $15.31 per share, and the stock dropped 12.8% and 12.4% as the deal priced. Other pressures included a $359 million investment in the Barber Lake campus where construction costs rose, a Barclays warning on AI financing, and a record $6.3 billion Binance hack that hit crypto stocks. Bitcoin mining still accounted for 78% of Q3 revenue. Cipher has $16.6 billion in contracted revenue and expects about $864 million in annual net operating income once three campuses stabilize, yet it owes about $6.7 billion and was worth about $3 billion at the end of October. The article says the key question is whether the company can sign leases that justify its borrowing.
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