Why Cipher Digital Stock Plunged 26% This Week
An $850 million zero-interest convertible debt offering and a concurrent share issuance sent Cipher Digital (NASDAQ:CIFR) down 25.7% this week, according to data provided by S&P Global Market Intelligence.
Cipher Digital stock changed hands at $10.04 as of the close on Thursday, Oct. 15, down 25.7% from Friday, Oct. 9’s close through Thursday, Oct. 15’s close. Over the same period, the S&P 500 (SNPINDEX:^GSPC) fell 0.3%, and the Nasdaq-100 was down 1.8%.
Management announced a private offering of $850 million in 0.00% convertible senior notes due 2032, with an option for initial buyers to purchase up to an additional $150 million. Convertible senior notes are zero-interest debt obligations that investors can later exchange for equity, trading lower interest expenses for potential stock dilution. Concurrently, the company agreed to exchange $165.9 million of its 1.75% convertible notes due 2030 for approximately 40.7 million common shares, swapping debt obligations for immediate share dilution. The stock sits down 66.7% (as of the close on Thursday, Oct. 15) from its 52-week high of $30.14.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.