Bitcoin Mining Firm IREN to Secure $450 Million via Convertible Note Offering

Bitcoin Miner Turned AI Firm IREN Targets $450M Raise Through Convertible Notes, Plans Share Dilution Hedge

IREN, formerly focused on bitcoin mining and now pivoting toward AI data infrastructure, is set to raise $450 million via a private offering of convertible senior notes maturing in 2029, according to a company announcement. An additional $50 million may be raised if initial investors opt for an overallotment.

The notes, available only to qualified institutional buyers, will accrue semiannual interest and may be converted into IREN shares under predetermined conditions. The company has also secured the option to redeem the notes starting mid-2028, provided its stock trades at least 30% above the conversion price for a sustained period.

To guard against share dilution and pricing volatility linked to potential conversions, IREN plans to deploy proceeds into a capped call strategy and prepaid forward share repurchase agreements—financial tools often used to cushion stock issuance impacts.

Still, the company cautioned that “if IREN’s share price exceeds the cap under the hedging structure, residual dilution and cash obligations may still occur.”

IREN’s shares dropped 6.8% in early trading, reflecting investor caution following its earlier shift from bitcoin mining expansion toward high-performance AI data centers, a move the company says aligns with changing market dynamics and higher-margin opportunities.