Bitcoin miner Iren (IREN) is preparing to raise up to $2.3 billion through convertible notes to refinance existing debt and support its operations amid declining hashprice pressures. The company, which also provides computing power for AI model training, plans to issue $1 billion in convertible senior notes due 2032 and $1 billion due 2033 via a private placement to institutional investors, with an option for buyers to acquire an additional $150 million of each series.
In addition, Iren intends to sell shares to help fund the repurchase of portions of its 2029 and 2030 convertible notes. On Tuesday, the company’s stock fell 5% to around $45, trading more than 40% below its November high. Analysts noted that the decline likely reflects short-term delta-hedging by banks participating in the offering, a common occurrence during convertible debt deals.
The move comes as hashprice—the expected daily revenue per terahash of mining power—dropped to a five-year low last month, reducing miners’ profitability. The metric rises with bitcoin’s price and network fees but falls as mining difficulty increases, directly impacting revenue streams and prompting Iren to secure lower-cost financing.
Final terms of the debt sale, including coupon rates and conversion premiums, will be set at pricing. The structure mirrors the company’s October zero-coupon convertible, indicating a strategy to reduce financing costs relative to the 3.25% and 3.50% coupons on the notes being retired. Iren also plans to use capped call transactions to limit shareholder dilution.
