$13 billion floods into Cipher Mining data-center bonds, highlighting AWS lease structure

Investor demand surged for a data-center bond issue tied to crypto miner Cipher Mining. The deal structure—combining AI infrastructure with cloud demand—was seen as drawing strong investor interest.

According to Bloomberg on the 4th (local time), Cipher Mining subsidiary Black Pearl Compute issued $2 billion of high-yield bonds to finance construction of a data center in Texas, drawing roughly $13 billion in orders. It is being viewed as one of the standout successes in the junk-bond market in recent years.

Once completed, the data center will be leased to Amazon Web Services (AWS) for at least 15 years. Analysts say securing a stable long-term lease boosted investor confidence. The Black Pearl data center will have total capacity of 300 megawatts (MW) and is being built under a contract Cipher Mining signed with AWS last November.

The bonds have a five-year maturity, with the coupon set at 6.125%. That is above the average yield of 5.56% for comparable BB-rated bonds. Market participants say surging demand for AI-infrastructure assets offset much of the spread premium.

Oracle, two days earlier, issued $25 billion of corporate bonds, setting the largest bond-sale record so far in 2026. Some analysts also note that, following Oracle’s successful offering, investor risk appetite has spread broadly across AI- and hyperscaler-linked bonds.

Bloomberg Intelligence said that concerns about an oversupply of AI-related bonds have eased after Oracle’s issuance, leading demand to broaden into bonds tied to data centers and cloud infrastructure.

Still, amid worries that the spread of AI technology could pressure profitability across the software sector, some companies’ stock and bond prices remain highly volatile. Adding to caution, about $500 billion in market capitalization has evaporated from the crypto market alone over the past week, keeping broader risk-asset sentiment on edge.

The market sees this case as a sign that crypto-mining firms are moving in earnest to expand their business models beyond traditional mining into providing data centers and AI infrastructure.