IREN Closes $3B Convertible Notes to Fund AI Expansion

TLDR

• IREN completed a $3 billion convertible senior notes offering due 2033 after increasing the deal size due to strong demand.
• The company priced the 1% notes with a 32.5% conversion premium, implying an initial conversion price of about $73.07 per share.
• Underwriters fully exercised the $400 million greenshoe option, bringing total proceeds to approximately $2.96 billion.
• IREN recently signed a five-year $3.4 billion AI cloud agreement with Nvidia to support its infrastructure plans.
• The company also plans to purchase around $3.5 billion worth of GPUs and related equipment from Dell.

IREN completed a $3 billion convertible senior notes offering due 2033 and expanded the raise after strong demand. The company priced the 1% notes with a 32.5% conversion premium, and it set the initial conversion price near $73.07 per share. However, IREN shares fell over 3% in pre-market trading following the announcement.

IREN Expands Convertible Notes Offering to Nearly $3 Billion

IREN announced on May 11 that it planned to raise $2 billion through convertible senior notes due 2033. However, investor demand increased quickly, and the company raised the target to $2.6 billion on May 12. It also added a $400 million greenshoe option, and underwriters exercised it in full by May 14. As a result, IREN secured about $2.96 billion in total proceeds from the transaction.

The company priced the notes with a 1% interest rate, and it set a 32.5% conversion premium. That premium implies an initial conversion price of about $73.07 per share. In comparison, IREN shares closed at $55.15 on May 11. The company structured the deal as convertible senior notes due in 2033, and it confirmed final pricing after bookbuilding.

IREN Advances AI Cloud Strategy with Nvidia and Dell Deals

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

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

IREN shares declined more than 3% in pre-market trading after the offering closed. Market data showed the stock trading below the implied conversion price set in the notes. The company has not issued further updates since confirming the full exercise of the greenshoe option.

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