IREN has successfully priced an $875 million private offering of 0.00% convertible senior notes due July 1, 2031. Settlement is expected on October 14.
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The notes carry an initial conversion price of approximately $85.63 per share, 42.5% above IREN’s last reported sale price of $60.09 on October 8. This is an initial conversion rate of 11.6784 ordinary shares per $1,000 principal amount. Holders may convert early upon specified events or at their election beginning April 1, 2031, until the business day before maturity.
Concurrently, IREN entered into capped call transactions to hedge potential dilution of up to 100% premium to the spot price, with an initial cap of $120.18 per share. These privately negotiated contracts are designed to offset cash payments or share issuances upon conversion, subject to anti-dilution adjustments under the transaction terms.
IREN estimates net proceeds of roughly $856.5 million, rising to $979.0 million if initial purchasers exercise their $125 million overallotment option. Approximately $49.6 million will fund capped call costs, with the balance earmarked for financing growth across IREN’s Bitcoin mining, AI cloud services, and data center segments.
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At time of publication, IREN is down 0.7% during pre-market hours.
