Cogent Secures $174M via IPv4 Securitization

21 April 2025 | IPv4 Blog

Cogent Pioneers First IPv4 Address Securitization Offering

As first reported in April 2024 by Brander Group, Cogent Communications (NASDAQ: CCOI) has completed a landmark financial transaction by securitizing its IPv4 address assets, raising $174.4 million through a structured debt offering. the company has been exploring ways to monetize its digital infrastructure in new ways.

The deal marks the first time a major internet service provider has used IP address blocks as collateral in a securitization. The offering, made through a bankruptcy-remote subsidiary, is backed by Cogent’s IPv4 address holdings, associated customer leases, and receivables.

The notes, priced at a 6.64% interest rate, have a five-year expected repayment term and were offered exclusively to qualified institutional investors under Rule 144A and Regulation D. The company stated that proceeds would be used for general corporate purposes.

Cogent retains operational control of the IPv4 addresses, which continue to support its core internet and private network services.

A New Approach to Monetizing Digital Infrastructure

This transaction highlights how IPv4 addresses—once viewed purely as technical necessities—are now being recognized as financial assets. With market prices for IPv4 addresses holding steady between $25 and $35 per address, and once being at all time highs of $60 per IP, the IPv4 leasing market is likely to continue growing over the years.

By securitizing a portion of these IPv4 assets, Cogent has created a new pathway for telecom and tech companies to raise capital without selling equity or divesting physical infrastructure.

Cogent Raises $174m by Securitizing IPv4 Addresses

Cogent’s $174 million IPv4 securitization signals a new approach to monetizing address space in the tech and telecom sectors.

Implications for the IPv4 Market

For companies holding unused or lightly utilized IPv4 space, Cogent’s transaction may offer a blueprint. The securitization model turns address leases into predictable revenue streams, which can then support financing without losing ownership or disrupting ongoing network operations.

Although the structure introduces debt and future repayment obligations, it offers financial flexibility at a time when capital markets are tightening for some sectors.

Looking Ahead

The deal represents roughly 6% of Cogent’s $2.85 billion market cap, suggesting that IPv4 assets can represent meaningful value even at scale. Whether other providers follow suit remains to be seen, but Cogent’s move could accelerate financial innovation around internet infrastructure.

With the transition to IPv6 still decades from playing any significant role in—and IPv4 remaining essential in many systems—the market for IPv4 address space remains critical. If demand holds and pricing remains stable, securitization may become a more common financing tool for asset-rich internet companies.

Our original April 2024 story about Cogent announcing a securitization offering

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Tags: Cogent, IPv4, IPv4 Demand, IPv4 Prices, IPv4 Trends, Securitization,