IREN to Raise $450M Through Convertible Notes, Eyes Dilution Hedges Amid AI Pivot

Bitcoin miner and AI infrastructure firm IREN has announced plans to raise $450 million through a private offering of convertible senior notes due in 2029, targeting institutional investors. The raise could increase to $500 million if initial buyers exercise an additional purchase option, the company said in a statement Tuesday.

The unsecured notes will pay semiannual interest and may be converted into IREN’s ordinary shares under specific terms. Beginning mid-2028, IREN has the right to redeem the notes early—provided its stock trades at least 30% above the conversion price over a predefined period.

IREN emphasized that proceeds will be deployed in part toward capped call transactions and a prepaid forward share repurchase—two financial instruments designed to mitigate equity dilution and market volatility that often accompany convertible debt offerings.

“These strategies are aimed at limiting dilution from note conversions and helping stabilize share performance,” the company said. “However, if IREN’s stock price exceeds the cap on the call transactions, some dilution and/or unhedged cash exposure may still occur.”

The funding move comes as IREN continues a strategic shift away from bitcoin mining toward AI-powered data center operations. The company had previously shelved expansion plans in mining to focus on what it sees as higher-growth opportunities in artificial intelligence.

IREN shares fell 6.8% in premarket trading, reflecting cautious investor reaction to the capital raise and the company’s changing business model.