Cipher Mining Inc. announced a $50 million private investment in public equity (PIPE) from Softbank Group Corp, positioning the technology-focused investor as a major shareholder in the company.
Softbank becomes major investor in Cipher Mining
The Cipher Mining (Nasdaq: CIFR) transaction involves Softbank purchasing approximately 10.4 million shares of Cipher's common stock, with the funds directed toward the company's high performance computing (HPC) initiatives.
According to the company, the investment comes as Cipher continues to expand its presence in large-scale industrial data center development and Bitcoin (BTC) mining activities. Tyler Page, CEO of Cipher Mining, described the investment as a milestone in the company's growth.
"We are pleased to welcome Softbank as a major investor in Cipher," Page said on Friday. "This investment comes at a pivotal moment in Cipher's growth trajectory as the company continues to attract attention for its project pipeline and innovative solutions in the large-scale industrial data center space."
Cipher's CEO added:
Softbank's focus on innovation in technology and AI development aligns with our vision to establish ourselves as a leader in HPC data center development.
Cipher said on Friday that this investment strengthens its position in the industry as it pursues broader operational capabilities. Keefe, Bruyette & Woods Inc. acted as financial advisor to the company, while Latham & Watkins LLP provided legal counsel for the transaction.
Late last November, the company unveiled plans for a new facility, the Stingray site, designed to improve infrastructure. This addition would integrate 100 megawatts (MW) of front-of-the-meter capacity into the expanding data center network.
