Bitcoin miner Iren (IREN) is preparing a major capital raise, aiming to secure up to $2.3 billion through a new convertible note offering as plunging hashprice pressures revenue and squeezes margins across the mining industry.

The company, which also provides compute capacity for AI training, plans to issue $1 billion in convertible senior notes due 2032 and another $1 billion due 2033 in a private placement to institutional investors. Buyers will have the option to purchase an additional $150 million of each tranche. Iren also intends to sell equity to help finance the repurchase of portions of its outstanding 2029 and 2030 convertible notes.

Shares fell 5% to roughly $45 on Tuesday and now sit more than 40% below their November highs. The decline likely reflects delta-hedging activity from banks involved in the offering—a common short-term market reaction when miners announce convertible deals.

Hashprice, a key industry metric that tracks the expected daily revenue from one terahash per second of computing power, has dropped to its lowest level in five years. The measure rises with bitcoin’s price and transaction fees but falls as mining difficulty increases, directly influencing miners’ profitability and their appetite for refinancing.

Final details on Iren’s offering, including coupon and conversion terms, will be determined at pricing. The structure resembles the company’s zero-coupon convertible issued in October, signaling another attempt to lock in lower-cost capital compared with the 3.25% and 3.50% rates on the debt being refinanced. Iren also plans to execute capped call transactions to help reduce dilution for shareholders.