IREN Drops After $3.6B Capital Raise; Cramer Flags Financing Risks
IREN, the bitcoin miner turned AI compute provider, fell sharply on Tuesday and is now down nearly 50% over the past month. The company raised $3.6 billion this week through two transactions.
Approximately $1.6 billion came from a registered direct equity sale of 39.7 million shares at $41.12, expected to close Dec. 8. The remaining $2 billion was raised through convertible debt—$1 billion of 0.25% notes due 2032 and $1 billion of 1% notes due 2033.
Shares dropped 15% on Tuesday after the announcement but edged higher in early Wednesday trading. Despite strong gains earlier this year, IREN remains about 50% below its all-time high from a month ago.
CNBC host Jim Cramer advised avoiding companies issuing new financings, specifically citing IREN. “Sell any company now that is doing a financing a la IREN,” he said, comparing it to late-cycle patterns in 1999–2000.
IREN will use the proceeds to repurchase $227.7 million of 2030 notes and $316.6 million of 2029 notes, removing them from conversion. An additional $174.8 million will fund capped call transactions to reduce dilution from the new convertibles.
The funding marks a major balance sheet restructuring for IREN as it navigates volatile markets and hedging flows tied to its new capital structure.
