IREN Plans Up to $1B Convertible Bond Offering to Fund AI Expansion
IREN on Tuesday announced plans to raise up to $1 billion through a private offering of convertible bonds, capitalizing on recent momentum in its share price to support the growth of its AI cloud services.
The offering includes $875 million in principal amount of notes due 2031, with an additional $125 million option available to initial purchasers, bringing the total potential to $1 billion. The notes will be offered to qualified institutional buyers under Rule 144A of the Securities Act.
The proposed raise follows a more than 800% surge in IREN’s stock over the past six months, driven by its strategic pivot into AI infrastructure. The company recently signed multi-year cloud service contracts with leading AI firms and expects to generate over $500 million in annualized run-rate revenue from its expanding GPU fleet.
The notes will be senior, unsecured obligations, accruing interest payable semi-annually and maturing on July 1, 2031. They will be convertible into cash, IREN shares, or a combination of both, subject to certain conditions. Beginning in January 2029, IREN may redeem the notes if its stock trades above 130% of the conversion price for a specified period.
IREN’s offering follows a wave of similar capital raises by other bitcoin miners expanding into high-performance computing (HPC) and AI colocation. In recent months, both TeraWulf and Cipher Mining have raised about $1 billion in convertible debt to fund infrastructure growth and fulfill AI hosting contracts with Fluidstack.
Part of the proceeds will be used to enter capped call transactions—derivative instruments intended to reduce dilution or offset potential cash payments upon conversion. The remaining funds will go toward general corporate purposes and working capital.
IREN noted that the capped calls will be cash-settled unless and until the company obtains shareholder approval to repurchase its ordinary shares under relevant corporate law. The company also warned that hedging activities related to these derivatives could impact its share price in either direction.
