IREN to Raise $450M via Convertible Notes as It Doubles Down on AI and Crypto Growth

AI-focused data center operator IREN plans to raise $450 million through a private sale of convertible senior notes due in 2029. The offering, disclosed in a company press release, targets qualified institutional buyers and includes a $50 million allotment option for initial purchasers. The move comes as Bitcoin (BTC) trades at an impressive $109,577.65, drawing fresh investor attention to crypto and infrastructure firms alike.

The unsecured notes will pay semiannual interest and are convertible into IREN’s ordinary shares under specific conditions. Starting mid-2028, the company can redeem the notes if its stock trades at least 30% above the conversion price over a defined period. To mitigate potential equity dilution and market volatility, IREN will use the proceeds for capped call transactions and a prepaid forward share repurchase strategy. These hedges aim to limit the number of new shares issued and support share price stability.

However, IREN noted that if its stock exceeds the capped call transaction price, there could still be dilution or no offset for potential cash payments. This risk underscores the company’s cautious approach in balancing growth financing with investor value protection.

Earlier this year, IREN halted its Bitcoin mining expansion to focus on AI infrastructure—a shift that aligns with broader market trends favoring high-performance computing and AI applications. Despite the pivot, IREN shares dropped 6.8% in pre-market trading, reflecting investor uncertainty around the sizable fundraising plan.

With institutional appetite for AI infrastructure and crypto exposure rising, IREN’s $450 million note sale signals a strategic bet on future growth while managing dilution risks. The company’s success may hinge on market reception to its hybrid AI and blockchain-driven roadmap.