IREN Secures $3B Convertible Notes and Allocates $201M to Capped Calls for AI Buildout
IREN Limited closed a $3 billion convertible senior notes offering with a 1% coupon, 2033 maturity and 32.5% conversion premium to raise net $2.96 billion. The company earmarked $201.3 million for capped calls at $110.30 per share and will deploy proceeds to scale AI data center infrastructure following $9.7 billion Microsoft and $3.4 billion Nvidia deals plus a $625 million Mirantis acquisition.
1. Convertible Notes Offering Details
IREN completed a $3 billion private convertible senior notes offering carrying a 1% annual coupon and maturing in 2033. The notes feature a 32.5% conversion premium over the pre-offer share price and generated $2.96 billion in net proceeds after fees, sold to qualified institutional buyers under Rule 144A.
2. Capped Call Transactions and Dilution Mitigation
The company allocated $201.3 million of the proceeds to purchase capped call transactions with a strike price of $110.30 per share, effectively capping potential dilution from note conversions. This structure allows existing shareholders to participate in upside while limiting dilution if conversion thresholds are met.
3. AI Infrastructure Deals and Strategic Shift
Proceeds from the offering will back IREN’s pivot from Bitcoin mining to AI infrastructure services, building on a $9.7 billion cloud hosting contract with Microsoft and a $3.4 billion AI cloud agreement with Nvidia. Days later, IREN also closed a $625 million acquisition of Mirantis to boost its software services capabilities and accelerate AI data center expansion.