IREN Limited (formerly Iris Energy), a Nasdaq-listed Bitcoin mining company, has successfully completed a $3 billion convertible note offering, one of the largest capital raises in the cryptocurrency mining sector. The transaction closed after investor demand pushed the initial $2 billion target to $2.6 billion, with a $400 million over-allotment option fully exercised, bringing total proceeds to approximately $2.96 billion.
The senior convertible notes, due in 2033, carry a 1% coupon rate and a 32.5% conversion premium, implying an initial conversion price of about $73.07 per share—well above IREN’s closing price of $55.15 when the terms were set. The company intends to use the net proceeds for general corporate purposes, including capital expenditures, working capital, and potential acquisitions, while a portion will fund call option transactions to manage dilution and hedge stock price movements.
IREN’s pivot toward AI cloud services is a core driver of the raise. The company recently signed a five‑year, $3.4 billion AI cloud agreement with NVIDIA and plans to purchase approximately $3.5 billion worth of GPUs and related equipment from Dell. These moves signal a strategic shift from pure Bitcoin mining toward high‑performance computing infrastructure, aligning the financing with long‑term data center and cloud capacity needs.
The offering underscores strong institutional confidence in IREN’s low‑cost, renewable‑energy‑focused mining operations and its expanding AI ambitions. It also highlights a broader trend of consolidation and financialization in the Bitcoin mining industry, as public companies secure capital while smaller miners struggle with post‑halving economics. Despite the demand, IREN shares fell over 3% in pre‑market trading after the pricing was announced.
