Applied Digital, Cipher Mining, and Core Scientific stocks fell 3-6% due to rising long-term Treasury yields, which increase the cost of financing for capital-intensive AI data center buildouts. This selloff reflects concerns over higher borrowing costs and the impact on future cash flows, rather than company-specific issues. Broader data center ETFs remain relatively stable, highlighting that the selloff targets highly leveraged buildout firms. Investors should watch Treasury yields closely, as further increases could deepen pressure on these volatile stocks.
Applied Digital's stock fell 4% following JPMorgan's downgrade of its bonds due to concerns over increasing debt from funding new AI data centers. Despite strong quarterly revenue growth and long-term contracts worth $36 billion, investors worry abou...
Shares of data center developers Cipher Digital and Applied Digital fell 9% and 6% respectively due to concerns over rising financing costs impacting their ability to fund new capacity ahead of rental income. Cipher Digital recently issued a zero-cou...
Cipher Digital's stock fell 5% following the pricing of an $850 million zero-interest convertible note aimed at funding an expansion of its AI data center projects, including the Barber Lake site. The company also plans a share exchange that increase...
Cipher Digital's stock dropped 14% following its announcement of an $850 million convertible senior notes offering combined with an exchange of existing debt for shares, which causes immediate shareholder dilution. The company is funding its data cen...
