Cipher, a Bitcoin mining company, saw its AI subsidiary's junk bond sale attract $13 billion in subscriptions.

PANews reported on February 5th that, according to Bloomberg, Black Pearl Compute, the AI ​​subsidiary of Bitcoin mining company Cipher Mining (NASDAQ: CIFR), attracted a whopping $13 billion in subscription demand in its $2 billion junk bond sale on Tuesday. The funds will be used to build the Black Pearl data center in Texas, which was leased to Amazon Web Services (AWS) last November for at least 15 years, with total contract revenue expected to reach $5.5 billion.

Black Pearl's newly issued five-year bonds were priced on Wednesday, yielding 6.125%, with the proceeds to be used to repay Cipher's previous equity investment of approximately $232.5 million in Black Pearl, among other corporate needs. The bonds are secured by a first-priority lien, covering virtually all assets of the issuer and guarantor.

Cipher has previously secured several high-value cooperation agreements with FluidStack and Google, demonstrating a trend of cryptocurrency mining companies diversifying into the high-performance computing field. However, Cipher's stock price fell 12.36% on Wednesday, closing at $14.25, affected by the continued sell-off in cryptocurrencies and related stocks. Cipher is currently the fourth largest Bitcoin mining company by market capitalization.