High-performance computing and bitcoin mining firm IREN (IREN) saw its stock slide 6% in after-hours trading following the announcement of an $875 million convertible debt offering.

The offering could expand to $1 billion if investors exercise an option to purchase an additional $125 million. The unsecured notes allow holders to convert into IREN shares or cash under certain conditions, with maturity scheduled for July 2031.

IREN said the proceeds will fund general corporate operations and capped call transactions, designed to limit equity dilution if the notes are converted. The company also may seek shareholder approval to repurchase shares to settle these instruments in the future.

The after-hours decline erased most of the day’s earlier gains from news of new multi-year AI cloud contracts leveraging Nvidia Blackwell GPU deployments. Despite the pullback, IREN shares remain up roughly 1,000% since April, reflecting heightened investor demand for AI infrastructure and high-performance computing plays.