IREN Stock Retreats 6% on Back of $875M Convertible Debt Deal

High-performance computing and bitcoin mining company IREN (IREN) saw its shares fall 6% in after-hours trading following the announcement of an $875 million convertible debt offering.

The offering could increase to $1 billion if investors exercise an option for an additional $125 million. The unsecured notes will allow holders to convert into IREN shares or cash under certain conditions, with maturity set for July 2031.

IREN said the proceeds will fund general corporate operations and capped call transactions, which are structured to limit potential equity dilution if the notes convert. The company may also seek shareholder approval to repurchase shares in the future to settle these instruments.

The after-hours drop wiped out most of the day’s earlier gains following IREN’s announcement of new multi-year AI cloud contracts using Nvidia Blackwell GPU deployments. Despite the pullback, shares remain up roughly 1,000% since April, reflecting the market’s strong appetite for AI infrastructure and high-performance computing plays.