Iren Announces Plans for $2.3 Billion Convertible Note Offering as Shares Fall

Bitcoin miner Iren (IREN) is seeking to raise up to $2.3 billion through a new round of convertible debt as falling hashprice continues to weigh on the company’s revenues. The miner, which also supplies high-performance compute for AI model training, is looking to refinance portions of its existing obligations while locking in more flexible terms.

Iren plans to issue $1 billion in convertible senior notes due 2032 and another $1 billion due 2033 through a private placement to institutional investors. Each tranche includes an option for purchasers to take an additional $150 million. The firm also intends to issue new shares to help finance the repurchase of some of its outstanding 2029 and 2030 convertible notes.

Shares fell 5% to roughly $45 on Tuesday and are now more than 40% below their November peak. The drop is likely tied to delta-hedging by banks participating in the transaction, a short-lived dynamic commonly seen when mining companies announce large convertible offerings.

Hashprice — the measure of expected daily revenue generated from one terahash per second of computing power — sank to a five-year low last month. The metric rises with bitcoin’s price and on-chain fees but declines when mining difficulty increases, directly affecting how much income miners can generate and often prompting them to seek cheaper financing.

Final pricing details for the offering, including coupon and conversion premiums, will be set at issuance. The deal structure resembles the zero-coupon convertible Iren issued in October, suggesting the company is again targeting lower-cost funding compared with the 3.25% and 3.50% coupons on the notes it aims to retire. The company also plans to enter into capped call transactions to help limit dilution for existing shareholders.