IREN Falls After $3.6B Capital Raise Amid Cramer Sell Signal
IREN, the bitcoin miner turned AI compute provider, dropped sharply on Tuesday and is now down nearly 50% over the past month. The company raised $3.6 billion in fresh capital this week through two transactions.
About $1.6 billion came from a registered direct equity sale of 39,699,102 shares at $41.12, expected to close on Dec. 8. The remaining $2.0 billion was raised via a new convertible debt package, split evenly between $1 billion of 0.25% notes due 2032 and $1 billion of 1% notes due 2033.
Shares fell 15% on Tuesday after the announcement but edged higher in early Wednesday trading. Despite a strong rally earlier this year, IREN is now nearly 50% below its all-time high from just a month ago.
Adding to investor caution, CNBC host Jim Cramer advised avoiding companies issuing new financings, specifically calling out IREN. “Sell any company now that is doing a financing a la IREN,” he said, noting parallels to late-cycle patterns from 1999–2000.
IREN plans to use proceeds to repurchase deeply in-the-money convertible notes: $227.7 million of 2030 notes and $316.6 million of 2029 notes, totaling $1.6 billion. These notes will be extinguished, removing conversion risk. An additional $174.8 million will fund capped call transactions to limit dilution from the new convertibles.
The transactions mark a major balance sheet restructuring for IREN as it navigates volatile markets and hedging flows tied to its new capital structure.
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