Cipher’s $850 million AI bet deepens investor scrutiny as Bitcoin miner’s stock plunges 52%

Cipher Digital shares slumped after the Bitcoin miner issued 40.7 million shares and borrowed $850 million to fund AI expansion.Data from Yahoo Finance shows that the company's stock closed at $8.98 on Oct. 16, down 10.6% for the session and at its lowest level since September 2025. The shares have lost more than 52% over the past year, reflecting mounting pressure on the company's valuation as it pursues an expensive transition into high-performance computing infrastructure.According to an Oct. 16 SEC filing, Cipher completed an exchange of approximately $165.9 million in convertible notes due 2030 for 40.7 million newly issued common shares, including consideration for accrued interest.The transaction eliminates most of that debt series, leaving approximately $6.6 million outstanding, while immediately expanding the company's share base and diluting existing investors.The exchange comes amid a sharp selloff that has erased roughly 31% of Cipher's market value per share since Oct. 12. Bondholders receiving the new shares could also create additional selling pressure if they liquidate their holdings or unwind hedging positions tied to the original debt.Meanwhile, Cipher completed a...