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-coupon convertible note to finance expansion, but market worries about heavy debt and delayed revenue have pressured its stock. Applied Digital also faces risks as it raises capital against future lease contracts amid higher borrowing costs. Meanwhile, broader data center funds and the overall market showed much smaller declines, highlighting investor caution specifically toward leveraged builders. The key outlook depends on whether Cipher Digital’s Barber Lake project secures contracted tenants and if financing costs stabilize for Applied Digital’s leased capacity.
Cipher Digital and Applied Digital stocks are down significantly on Pluang, with Cipher falling 10.06% to USD 8.94 and Applied dropping 8.27% to USD 18.64 as of Oct 15, 2026 21:02 WIB. The broader data center ETF, DTCR, shows a smaller decline of 2.05%, trading at USD 25.75 at the same time.
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...
