IREN Plans to Raise $450 Million Through Convertible Debt Offering
Bitcoin and AI data center operator BTC plans to raise $450 million through a private sale of convertible senior notes.
- Notes will be offered to qualified institutional buyers, with a potential increase of $50 million from optional allotments.
- Due in 2029, the unsecured notes will pay semiannual interest and can convert into IREN’s ordinary shares under specific conditions.
- The company may redeem the notes starting mid-2028 if its stock trades 30% above the conversion price for a specified period.
- Proceeds will fund strategies to mitigate equity dilution and market risk, including capped call transactions and prepaid forward share repurchase.
- These hedges aim to minimize future note conversions' impact and support the company's share price by limiting new share issuance.
- Market price exceeding capped call transaction limits could still result in dilution or cash payment offsets.
- Earlier this year, IREN halted its bitcoin mining expansion to focus on AI data centers. Shares fell 6.8% before market opening.