Cipher Digital stock falls 14% after $850M convertible note raise and share exchange triggers immediate dilution.

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 center expansions for hyperscale tenants, with signed leases at its Black Pearl and Barber Lake campuses expected to generate rental income soon. Investors are cautious about whether lease revenue can grow fast enough to offset the increased share count and rising debt costs. The market is also watching Applied Digital and Core Scientific for similar financing moves in the sector.

Cipher Digital shares fell 14.46% to USD 11.12 on Pluang as of Oct 13, 2026, 20:31 WIB, reflecting heavy selling interest despite 94% buy orders. Applied Digital also dropped 5.46% to USD 21.98, with a market cap of $7.03B and mixed order activity. These price moves align with the sector's cautious mood on financing strategies and debt levels.