High-performance computing and bitcoin mining firm IREN (IREN) saw its stock drop 6% in after-hours trading following the announcement of an $875 million convertible debt sale.
The offering could expand to $1 billion if investors exercise an option to purchase an additional $125 million, the company said. The unsecured notes will allow holders to convert into shares or cash under specific conditions, with maturity slated for July 2031.
Proceeds from the sale are intended to fund general corporate operations and capped call transactions, which are designed to mitigate potential share dilution if the notes convert to equity. IREN also said it may seek shareholder approval to repurchase shares to settle these instruments in the future.
The stock’s decline erased most of the gains it had logged earlier in the day after IREN secured new multi-year AI cloud contracts featuring Nvidia Blackwell GPU deployments. Even with the pullback, IREN shares remain up about 1,000% since April, reflecting strong investor demand for AI and high-performance computing infrastructure plays.
