IREN Raises $3 Billion in Convertible Notes to Finance AI Expansion

TLDR

• IREN finalized a $3 billion issuance of convertible senior notes maturing in 2033, increasing the offering size due to robust investor interest.
• The company set the interest rate at 1% and established a conversion premium of 32.5%, resulting in an initial conversion price of approximately $73.07 per share.
• The underwriters fully exercised the $400 million greenshoe option, bringing total proceeds to around $2.96 billion.
• IREN recently entered into a five-year, $3.4 billion AI cloud agreement with Nvidia to support its infrastructure development.
• The company also intends to acquire about $3.5 billion worth of GPUs and related equipment from Dell.

(SeaPRwire) –   IREN successfully completed a $3 billion offering of convertible senior notes due in 2033 and expanded the transaction following strong demand. The company priced the notes with a 1% coupon and a conversion premium of 32.5%, setting the initial conversion price at approximately $73.07 per share. However, IREN’s stock declined by over 3% in pre-market trading subsequent to the announcement.

IREN Expands Convertible Notes Offering to Nearly $3 Billion

IREN announced on May 11 that it intended to raise $2 billion through convertible senior notes due in 2033. Investor demand grew rapidly, prompting the company to increase the target to $2.6 billion on May 12. The firm also included a $400 million greenshoe option, which the underwriters fully exercised by May 14. Consequently, IREN secured total proceeds of approximately $2.96 billion from the transaction.

The company priced the notes with a 1% annual interest rate and set a conversion premium of 32.5%. This premium translates to an initial conversion price of about $73.07 per share. For reference, IREN shares closed at $55.15 on May 11. The notes are structured as convertible senior notes due in 2033, and final pricing was determined after the bookbuilding process.

IREN Advances AI Cloud Strategy with Nvidia and Dell Deals

IREN recently signed a five-year AI cloud contract valued at $3.4 billion with Nvidia. The company confirmed the agreement as part of its strategic shift toward AI cloud and hyperscale infrastructure services. It also plans to purchase approximately $3.5 billion in GPUs and related equipment from Dell.

The company stated that it continues to transition from bitcoin mining to AI-focused infrastructure. It aligned the financing with its capital requirements for data centers and cloud computing capacity. Executives have described the raise as support for long-term infrastructure expansion. The company has not disclosed further terms beyond the announced pricing and maturity date.

IREN shares fell more than 3% in pre-market trading after the offering closed. Market data indicated that the stock was trading below the implied conversion price established in the notes. The company has not provided any additional updates since confirming the full exercise of the greenshoe option.