Bitcoin Mining Firm IREN Plans $450M Convertible Debt Raise to Fund Buybacks, Hedge Risks
IREN, the bitcoin miner turned AI data center operator, announced plans to raise $450 million via a private offering of convertible senior notes maturing in 2029. The offering may expand by another $50 million if demand warrants.
The convertible notes will pay semiannual interest and are convertible to equity under specific conditions. Redemption rights kick in mid-2028 if IREN stock outperforms the conversion price by 30% or more for a set period.
To cushion the impact of dilution, IREN will deploy proceeds into capped call transactions and prepaid share repurchases, both designed to support the share price and reduce the number of new shares hitting the market.
Still, the company cautioned that shareholder dilution is not fully avoidable if prices move beyond the capped range.
IREN’s stock dropped nearly 7% in pre-market trading, as investors assess the firm’s shift away from crypto mining toward AI infrastructure.
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