IREN plans to offer $2 billion in convertible senior notes

NEW YORK - IREN Limited (NASDAQ:IREN) announced Monday its intention to offer $2 billion in convertible senior notes through a private placement to qualified institutional buyers under Rule 144A of the Securities Act. The company, currently trading at $48.49 with a market capitalization of $13.55 billion, has seen its stock surge nearly 470% over the past six months according to InvestingPro data.

The offering will consist of $1 billion in notes due 2032 and $1 billion in notes due 2033, with options for initial purchasers to buy up to an additional $150 million of each series. The notes will be senior, unsecured obligations with interest payable semi-annually. InvestingPro data shows IREN operates with a moderate level of debt, with a debt-to-equity ratio of 0.34 and a strong current ratio of 5.52, indicating liquid assets comfortably exceed short-term obligations.

According to the company’s press release statement, noteholders will have conversion rights under certain conditions, with IREN having the option to settle conversions in cash, ordinary shares, or a combination of both. The notes will be redeemable at IREN’s option starting December 6, 2028 for the 2032 notes and December 6, 2029 for the 2033 notes, subject to specific conditions.

IREN also announced plans for a concurrent registered direct offering of ordinary shares to fund the repurchase of a portion of its outstanding convertible notes due 2029 and 2030.

In connection with the new notes offering, the company expects to enter into capped call transactions with financial institutions to potentially reduce dilution upon conversion of the notes.

The company intends to use the net proceeds to fund these capped call transactions, repurchase a portion of its existing convertible notes, and for general corporate purposes.

The notes and any shares issuable upon conversion have not been registered under the Securities Act and cannot be offered or sold except pursuant to an exemption from registration requirements.

In other recent news, IREN Limited announced a $2 billion offering of convertible senior notes through a private placement to qualified institutional buyers. The offering includes $1 billion in notes due in 2032 and another $1 billion due in 2033, with options to purchase an additional $150 million of each series. The company also appointed KPMG LLP as its new independent auditor, replacing Raymond Chabot Grant Thornton LLP. This change followed a recommendation from IREN’s Audit and Risk Committee and approval by the board of directors.

Additionally, Citizens initiated coverage on IREN Limited with a Market Outperform rating, setting a price target of $80. This follows IREN’s strategic shift from bitcoin mining to high-performance computing services in the AI market. Meanwhile, H.C. Wainwright raised its price target for IREN to $56, despite maintaining a Sell rating, citing underwhelming fiscal first-quarter results but noting an increase in AI Cloud revenue guidance for 2026. Furthermore, Canaccord Genuity increased its price target on IREN to $70, maintaining a Buy rating, due to a new deal with Microsoft for GPU services at its data centers. These developments highlight IREN’s evolving business strategies and financial maneuvers.

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