IREN Plans $2B Convertible Issuance, Adds Equity Sale as Bitcoin Miners Deleverage
IREN plans to raise $2.3 billion through new convertible bonds and a concurrent equity sale, aiming to reduce portions of its outstanding convertible notes as bitcoin’s hashprice hovers near all-time lows.
IREN said on Monday that it intends to issue $1 billion of convertible senior notes due 2032 and another $1 billion due 2033 in a private placement to institutional investors, with an option for purchasers to take up to $150 million of additional notes for each series.
In parallel with the new convertible issuance, IREN expects to offer ordinary shares through a registered direct sale to a limited number of investors. Proceeds from that equity sale are expected to match the cash needed for a planned repurchase of a portion of the existing convertible notes.
Although the terms—including interest rate and conversion premium—will be set at pricing, the new convertible bond offerings follow IREN’s $1 billion convertible note issuance completed in October, which carried a 0% coupon.
That structure suggests the company may again aim for zero-coupon convertibles, which would carry a lower interest cost than the 3.25% and 3.50% coupons attached to the existing 2030 and 2029 notes the company is seeking to repurchase.
The potential refinancing at lower interest expense comes at a time when industry-wide hashprice conditions have pressured miner cash flows, including those of large-scale operators with relatively efficient fleets, as noted in TheEnergyMag’s Q3 look-back report.
The company plans to conduct privately negotiated buybacks with holders of its 3.25% notes due 2030 and 3.50% notes due 2029. The size and pricing of the repurchases will depend on the trading levels of the notes and IREN’s share price at the time of the transactions. Any notes repurchased will be extinguished and no longer convertible into IREN shares. IREN may also repurchase additional notes after the new issuance is completed.
