IREN Shares Sink After Unveiling $2 Billion Convertible Offering for AI Buildout

IREN shares fell about 9% in pre-market trading Monday, leading declines among publicly traded bitcoin miners after the company launched a $2 billion convertible debt offering to help finance its accelerating AI infrastructure expansion.

The company said Monday it plans to issue convertible senior notes due 2033 in a private placement to qualified institutional buyers, with an option for initial purchasers to buy an additional $300 million of notes.

The latest capital raise would mark one of the largest convertible offerings yet among publicly traded bitcoin miners pivoting toward AI and hyperscale infrastructure, as companies race to secure funding for GPU deployments, power infrastructure and data center buildouts.

IREN said the notes will be unsecured obligations maturing in December 2033 and will pay semi-annual interest, with conversion terms to be finalized at pricing. The company also retained the option to redeem the notes starting in mid-2030 if its share price exceeds 130% of the conversion price for a specified period.

A portion of the proceeds will fund “capped call” transactions designed to reduce shareholder dilution if the notes are converted into equity. The offering comes days after IREN announced a series of aggressive AI expansion initiatives, including a five-year, $3.4 billion managed cloud services agreement with Nvidia and the acquisition of cloud infrastructure software provider Mirantis.

Under the Nvidia agreement announced last week, IREN will provide managed GPU cloud services powered by Blackwell systems deployed at its Childress, Texas campus. The company also recently disclosed plans to purchase approximately $3.5 billion worth of GPUs and ancillary equipment from Dell.

The latest financing also appears to streamline IREN’s existing convertible note hedging structure. The company said it expects to partially unwind capped call transactions tied to its outstanding 2029 and 2030 convertible notes concurrently with the new offering.