Why Is Cipher Digital Stock Falling Wednesday?

Cipher Digital Inc. (NASDAQ:CIFR) stock is under heavy pressure Wednesday as investors react to the company’s newly priced $810 million debt offering and a broader sell-off across technology and cryptocurrency-linked stocks.

Debt Financing Weighs On Sentiment

Cipher Digital announced that its wholly-owned subsidiary, Stingray Compute LLC, priced a $810 million offering of 6% senior secured notes due 2031.

According to the announcement, the notes are priced at 99.750% of their principal amount in a private placement expected to close on June 15.

Cipher disclosed that it will provide a customary completion guarantee with respect to the Stingray Facility, under which it will fund the Issuer as necessary to ensure the timely completion of the Stingray Facility.

Tech And Crypto Weakness Add Pressure

Cipher’s slide is occurring alongside major market pullbacks. The tech-heavy Nasdaq is down 1.42%, while the S&P 500 has shed 0.96%. Compounding the macro tech drop is weakness in the crypto market, which directly impacts data center developers tied to digital assets.

Bitcoin (CRYPTO: BTC) is trading at $62,126.93, up a muted 1.33% over the last 24 hours but down 5.64% over the past week. Ethereum (CRYPTO: ETH) stands at $1,640.82, showing a steep 10.11% decline over the last 7 days.

Cipher Digital Short Interest Report

Recent exchange data shows that short interest in Cipher Digital decreased during the last reporting period, falling from 54.81 million to 52.53 million shares. This leaves 15.67% of the company’s publicly available shares short.

With a recent average daily volume of 22.50 million shares, short sellers need 2.33 days to close out their positions.

CIFR Price Action: Cipher Digital shares were down 7.75% at $21.25 at the time of publication on Wednesday, according to Benzinga Pro data.

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