IREN to offer $450 million in convertible senior notes due 2029

SYDNEY - IREN Limited (NASDAQ: IREN), currently trading at $10.49 with a market capitalization of $2.5 billion, announced Tuesday its plan to offer $450 million in convertible senior notes due December 15, 2029, to qualified institutional buyers in a private offering under Rule 144A of the Securities Act.

The company also plans to grant initial purchasers an option to buy up to an additional $50 million in notes within 13 days of the first issuance.

The senior unsecured notes will accrue interest payable semi-annually, with noteholders having conversion rights under certain circumstances. IREN will settle conversions through cash, ordinary shares, or a combination of both at its discretion.

The notes will be redeemable at IREN’s option after June 20, 2028, if the company’s share price exceeds 130% of the conversion price for a specified period. The redemption price will equal the principal amount plus accrued interest.

IREN intends to use part of the proceeds to fund capped call transactions with financial institutions and a prepaid forward transaction. These transactions are designed to reduce potential dilution to ordinary shares upon note conversion and offset potential cash payments exceeding the principal amount of converted notes.

The remainder of the proceeds will go toward general corporate purposes and working capital, according to the company’s press release statement.

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

IREN operates as a vertically integrated data center business focusing on Bitcoin mining and AI applications, using renewable energy across facilities in the U.S. and Canada. The company has demonstrated impressive growth with revenue increasing 128% in the last twelve months and maintaining strong gross profit margins of 92%. InvestingPro analysis reveals 14 additional key insights about IREN’s performance and prospects, available to subscribers along with a comprehensive Pro Research Report that provides deep-dive analysis of the company’s fundamentals and growth potential.

In other recent news, IREN Limited reported record-breaking financial performance for May 2025, achieving the highest monthly revenue and hardware profit in its history. The company announced a revenue of $64.7 million from Bitcoin mining, with a hardware profit of $47.8 million and a hardware profit margin of 74%. Additionally, the AI Cloud Services division reported $2.2 million in revenue, with a 98% profit margin. Despite falling short of third-quarter fiscal 2025 revenue expectations at $148.1 million against the anticipated $163.83 million, IREN’s revenue still saw a 24% increase from the previous quarter. Analysts at H.C. Wainwright maintained a Buy rating on IREN, with a price target of $21, expressing optimism about the company’s future prospects. The company is on track to reach a 50 EH/s Bitcoin mining capacity by the end of June 2025 and plans to focus on expanding its AI infrastructure. IREN is currently negotiating with potential customers for its Horizon 1 AI Data Center, which is expected to generate significant annualized revenues upon completion. The company ended the quarter with $184.3 million in cash and cash equivalents, highlighting its strong financial position.

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