Overview
- IREN, which closed the upsized offering Thursday, raised $3.0 billion in 1.00% convertible notes due 2033, generating about $2.96 billion after fees.
- The deal consisted of a $2.6 billion base tranche plus a fully exercised $400 million option, with all securities sold privately to qualified institutional buyers under Rule 144A.
- The company set a 32.5% conversion premium and committed $201.3 million to capped call hedges that aim to curb dilution up to an initial cap of $110.30 per share.
- Proceeds support IREN’s shift from Bitcoin mining to AI infrastructure following a five-year, $3.4 billion Nvidia cloud agreement and a previously announced $9.7 billion Microsoft GPU hosting deal, with Nvidia holding a five-year warrant for up to 30 million shares at $70.
- Analyst views and trading have been mixed this week, and the company says dilution could still occur if the share price climbs above the capped-call level even as the raise strengthens near-term liquidity.