Key Highlights

● Cipher shares were down 7.78% at $7.47 pre-market, steeper than most crypto peers.

● Pressure comes from the Binance hack, an AI selloff and dilution concerns.

● Cipher priced $850 million of convertible notes on October 14 at a $15.31 conversion price.

● Third-quarter results are due before the open on Monday, November 2.

Cipher Digital (NASDAQ:CIFR) is one of the steeper decliners among crypto-linked stocks before Friday's open. A pre-market table showed the shares down 7.78% at $7.47 as of 8:23 a.m. ET, and other market data had them down 5.3% at 4:04 a.m. ET. The move comes as a record hack at Binance hits Bitcoin and as AI infrastructure stocks slide after Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) earnings.

Three pressures at once

The first is crypto. Binance paused withdrawals after a theft of about $6.3 billion, the largest crypto hack on record. TRM Labs and Elliptic linked it to North Korea-linked hackers, and about $3 billion of the stolen Assets has been frozen, according to crypto market reports. Bitcoin fell to an overnight low of $76,400, its lowest since September 18. Cipher grew up as a bitcoin miner, so the token's slide still weighs on sentiment.

The second is AI. Cipher has been repositioning as a developer of data centers for high-performance computing and AI customers. Those stocks are being sold on Friday after Amazon's spending plans and negative free cash flow, plus Intel's weak outlook, revived fears about AI cash burn. Nasdaq-100 futures were down about 2.6% around 8 a.m. ET, according to a live market blog.

The third is dilution, which automated news context cited alongside the AI selloff. That refers to a Convertible Bond deal from earlier this month rather than new news on Friday, so its role in today's move is an inference, not a confirmed cause.

The $850 million convertible

On October 14, Cipher priced $850 million of 0.00% convertible senior notes due November 1, 2032, according to its release. The initial conversion price was about $15.31 per share, a 35% premium to the October 13 close, and the initial purchasers had a 13-day option to buy up to $150 million more. Net proceeds were about $835.1 million before expenses, with about $89.7 million used for capped call transactions designed to reduce dilution.

Cipher also agreed to exchange about $165.9 million of its 1.75% notes due 2030 for about 40.7 million common shares. The stock fell 12.35% on the day of pricing. With shares now near $7.47, well below the conversion price, the notes look more like Debt than Equity for now, but the exchange shares and the possibility of future conversions still weigh on the share count outlook.

Cipher said proceeds would go to its Barber Lake site, its high-performance computing pipeline, development sites and general corporate purposes. In September, it extended its Barber Lake Lease to 20 years, lifting total contracted Revenue from $3.8 billion to more than $9 billion.

Index context and what to watch

Cipher trades on the Nasdaq and is part of the Nasdaq Composite. It is falling more than many crypto peers, which fits its dual exposure to bitcoin and the AI Data Center trade.

The next big catalyst is near. Cipher will report third-quarter 2026 results and a Business update before the market opens on Monday, November 2, with a call at 8:00 a.m. ET, according to the company. Investors will look for progress on Barber Lake, new tenant signings and how the convertible proceeds are being deployed.

The broader market tone will matter too. If the Nasdaq-100 extends its losses after the open, high-beta names like Cipher could stay under pressure regardless of company news, while a rebound in bitcoin could ease some of the selling.

Risks include execution on large construction projects, the Cost of Capital with the 10-year Treasury Yield near 5%, tenant concentration and bitcoin volatility.