IREN Closes $3 Billion Convertible Deal after AI Push Draws Bigger Backing

IREN has closed a $3 billion convertible senior notes offering, expanding one of the largest capital raises yet by a publicly traded bitcoin miner pursuing an aggressive buildout of AI infrastructure.

The company said Thursday the deal included a fully exercised $400 million greenshoe option, increasing the offering from the originally announced $2.6 billion to $3.0 billion. The notes carry a 1.00% coupon and mature in 2033.

The financing generated approximately $2.96 billion in net proceeds, which IREN said will be used for general corporate purposes and working capital after allocating about $201.3 million toward capped call transactions designed to reduce shareholder dilution from future note conversions.

The notes were priced with a 32.5% conversion premium, while the accompanying capped call structure established an initial cap price of $110.30 per share — double IREN’s May 11 closing price of $55.15.

The structure effectively gives IREN substantially higher upside protection against dilution than the underlying conversion terms alone, a feature increasingly used in large-scale AI infrastructure financings tied to soaring equity valuations.

The deal also highlighted strong institutional demand for AI-linked infrastructure exposure despite investor concerns earlier this week over dilution risk. IREN shares fell roughly 9% in pre-market trading Monday after the company first disclosed plans for the convertible offering.

The absence of a standard investor put option — aside from customary protections tied to fundamental corporate changes — may also signal favorable negotiating leverage for IREN amid strong market appetite for AI infrastructure debt.

J.P. Morgan, Goldman Sachs, Citigroup, Jefferies, MUFG, Wells Fargo and Cantor Fitzgerald acted as lead bookrunners on the transaction.

The financing further cements IREN’s transition from a pure-play bitcoin miner into an AI cloud and hyperscale infrastructure operator. The company recently announced a five-year, $3.4 billion AI cloud services agreement with Nvidia and disclosed plans to purchase approximately $3.5 billion worth of GPUs and related equipment from Dell.

Like several peers across the sector, IREN has increasingly leaned on convertible debt and structured financing to fund GPU deployments, power infrastructure and data center expansion. But the scale of the latest raise places it among the most aggressive capital market moves yet by a former bitcoin mining company pivoting toward AI.

The company also said it partially unwound capped call transactions tied to its existing 2029 convertible notes as part of the broader refinancing and hedging strategy.