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NEW YORK - IREN Limited (NASDAQ:IREN), a high-growth technology company with a market capitalization of $15.71 billion and impressive year-to-date returns of 488%, announced Tuesday its intention to offer $875 million in convertible senior notes due 2031 to qualified institutional buyers through a private placement under Rule 144A of the Securities Act. According to InvestingPro analysis, the company maintains a healthy financial position with liquid assets exceeding short-term obligations.
The company plans to grant initial purchasers an option to buy up to an additional $125 million in notes within 13 days of the initial issuance.
According to the press release statement, the notes will be senior, unsecured obligations with semi-annual interest payments, maturing on July 1, 2031, unless earlier repurchased, redeemed, or converted. Noteholders will have conversion rights under certain circumstances, with IREN settling conversions through cash, ordinary shares, or a combination of both.
The notes will be redeemable at IREN’s option, in whole or in part, from January 8, 2029 until 30 trading days before maturity, provided IREN’s share price exceeds 130% of the conversion price for a specified period.
IREN intends to use part of the net proceeds to fund capped call transactions with the initial purchasers or their affiliates and other financial institutions. These transactions are designed to reduce potential dilution to ordinary shares upon conversion of the notes. The remainder will fund general corporate purposes and working capital.
In connection with the offering, IREN expects to enter into privately negotiated capped call transactions covering the number of ordinary shares underlying the notes, subject to anti-dilution adjustments.
IREN is a developer and operator of data centers powered by renewable energy, supporting Bitcoin mining and AI applications across the U.S. and Canada. The company reports having 2,910MW of grid-connected power secured across more than 2,000 acres, with 810MW of operating data centers. InvestingPro data reveals the company’s remarkable revenue growth of 167.65% in the last twelve months, with analysts anticipating continued strong performance. Get access to over 20 additional ProTips and comprehensive analysis with an InvestingPro subscription, including the detailed Pro Research Report available for IREN and 1,400+ other top stocks.
The notes offering has not been registered under the Securities Act and cannot be offered or sold except pursuant to exemptions from registration requirements. The company operates with a moderate debt level, maintaining a healthy current ratio of 4.29, though InvestingPro’s Fair Value analysis suggests the stock may be trading above its intrinsic value at current levels.
In other recent news, IREN Limited has announced securing new multi-year cloud services contracts with AI companies for NVIDIA Blackwell GPU deployments. The company has customer contracts for 11,000 of its 23,000 GPUs, which are expected to contribute approximately $225 million in annualized run-rate revenue by the end of 2025. IREN anticipates achieving over $500 million in annualized run-rate revenue from its entire GPU fleet by the end of the first quarter of 2026. In another development, Compass Point has raised its price target for IREN to $50, maintaining a Buy rating. This decision follows IREN’s recent procurement of 12,400 additional accelerators, significantly expanding its AI Cloud fleet. However, JPMorgan has downgraded Iris Energy from Neutral to Underweight, citing valuation concerns. The investment bank set a price target of $24, expressing skepticism about the company’s potential in the high-performance computing sector. These updates reflect the varied perspectives on IREN’s growth and valuation.
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