Chiara Bianchi
IREN, a tech-driven firm listed on Nasdaq, has unveiled plans to raise $450 million through a private placement of convertible senior notes, targeting institutional investors. In an update shared Tuesday, the company revealed that it could offer an additional $50 million to early purchasers within a 13-day window following the initial issuance.
Part of the raised capital will be used for capped call transactions. These financial instruments aim to reduce potential dilution resulting from the conversion of the notes and help mitigate cash outflows if the repayment value exceeds the original principal. This strategy is intended to preserve shareholder value during the fundraising process.
$100 Million Share Buyback Agreement Planned
IREN also intends to pursue a prepaid forward share repurchase agreement worth up to $100 million. This move is designed to support investor hedging strategies and potentially maintain stock price stability amid market fluctuations.
Funding Growth in Bitcoin Mining and AI Infrastructure
Remaining proceeds from the offering will be allocated toward general corporate initiatives and used as working capital, further strengthening IRENโs position in the evolving digital asset and AI infrastructure landscape.
Previously known as Iris Energy, IREN manages data center operations across 2,000 acres in both the United States and Canada, with access to 2,910 megawatts of grid-connected electricity. The company is currently focused on three core sectors: Bitcoin mining, AI cloud computing, and AI-powered data centers.
Market Performance Snapshot
As of Tuesdayโs market close, IREN shares rose by 1.45%, finishing at $10.49, according to Google Finance. The stock has shown minimal movement year-to-date, recording a modest 0.29% gain.
