IREN Prices $500M Convertible Bonds as Bitcoin Miner Ramps Up Debt Financing

IREN has priced an upsized $500 million convertible senior notes offering, joining a growing cohort of public bitcoin miners turning to convertible debt to bolster capital reserves amid increasingly competitive mining economics.

The deal, announced late Tuesday, comes after IREN initially proposed a $450 million offering. The notes, which carry a 3.5% coupon and mature in 2029, were sold in a private placement to qualified institutional buyers under Rule 144A. The company also granted initial purchasers an option to buy up to an additional $50 million in notes over the next 13 days.

The convertible notes feature a 30% conversion premium, while accompanying capped call transactions are structured to provide a hedge on conversions up to an initial cap price of $20.98 per share — representing a 100% premium to IREN’s current share price.

IREN expects to net approximately $486.1 million from the offering after fees and expenses — or up to $534.9 million if the deal’s overallotment option is fully exercised. The company will allocate roughly $48.9 million toward the capped call transactions and approximately $92.5 million to fund a prepaid forward share repurchase transaction. The remaining proceeds will go toward general corporate purposes and working capital.

IREN’s move follows a wave of convertible debt activity among publicly traded Bitcoin miners that peaked in Q4 last year with more than $4 billion, which has cooled down over the previous quarter as the mining economics continue to compress.

IREN’s latest raise also comes as the company seeks to diversify beyond mining. However, its efforts to scale AI cloud services remain early-stage: the unit generated just $9.43 million in revenue for the nine months ended March 31.