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SYDNEY - IREN Limited (NASDAQ: IREN), a $2.46 billion market cap company with impressive revenue growth of 128% over the last twelve months, announced Friday it has closed its offering of $550 million in 3.50% convertible senior notes due 2029, which was upsized from an initial $450 million due to strong investor demand.
The offering, made to qualified institutional buyers under Rule 144A of the Securities Act, generated approximately $534.9 million in net proceeds after deducting discounts, commissions, and estimated expenses.
The notes feature a 30% conversion premium with no put option for investors except in cases of fundamental changes. IREN entered into capped call transactions that provide a hedge upon conversions up to an initial cap price of $20.98 per share, representing a 100% premium over the company’s last reported share price of $10.49 on June 10.
Of the proceeds, approximately $53.8 million will fund the capped call transactions, while $92.5 million will go toward a prepaid forward share purchase transaction. The remainder will be used for general corporate purposes and working capital.
The prepaid forward transaction involves the purchase of approximately $92.5 million of IREN’s ordinary shares for settlement after the notes’ maturity date, intended to facilitate derivative transactions between the forward counterparty and note investors. According to InvestingPro data, IREN operates with a moderate level of debt, though analysts note the company is quickly burning through cash.
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC served as active bookrunners for the offering.
IREN describes itself as a vertically integrated data center business using 100% renewable energy, with operations spanning Bitcoin mining, AI cloud services, and AI data centers.
The information in this article is based on a company press release statement.
In other recent news, IREN Limited reported record-breaking revenue and hardware profit for May 2025, achieving $64.7 million in revenue and a hardware profit of $47.8 million, with a 74% profit margin. The company also saw growth in its AI Cloud Services division, with revenues reaching $2.2 million and a 98% profit margin. Despite missing third-quarter fiscal 2025 revenue estimates of $163.83 million, IREN recorded a 24% revenue increase from the previous quarter, totaling $148.1 million. Bitcoin mining revenue rose to $141.2 million, while AI cloud services revenue increased to $3.6 million. The company announced plans to offer $450 million in convertible senior notes due in 2029, with proceeds intended for various corporate purposes, including reducing potential share dilution. H.C. Wainwright maintained a Buy rating on IREN, highlighting the company’s progress in Bitcoin mining and AI data centers. IREN is on track to achieve a 50 EH/s hashrate by the end of June 2025 and plans to focus on its AI infrastructure initiatives. The company is also advancing its Horizon 1 AI Data Center project, expected to be completed in Q4 2025, with anticipated revenues between $75 million and $100 million annually.
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