IREN closes $3 billion convertible notes offering as Bitcoin miner's AI infrastructure push accelerates

IREN Limited (IREN) has closed a $3 billion convertible senior notes offering, raising approximately $2.96 billion in net proceeds as the Bitcoin miner continues to build out its position as a vertically integrated AI cloud infrastructure provider.

The offering was initially sized at $2.6 billion, with the full $400 million greenshoe exercised, an official disclosure noted.

The notes carry a 1.00% coupon, mature in 2033, and were sold at a 32.5% conversion premium in a Rule 144A private placement to qualified institutional buyers.

Concurrent with the offering, IREN entered into capped call transactions setting a cap price of $110.30 per share, a 100% premium over the company's last reported sale price of $55.15 on May 11. The structure is designed to limit dilution upon note conversion up to that ceiling. Above it, dilution and potential cash obligations resume.

IREN allocated $201.3 million of the net proceeds to fund the capped call transactions, with the remainder directed toward general corporate purposes and working capital.

Separately, IREN terminated a portion of the capped call transactions tied to its existing 3.50% convertible notes due 2029, a portion of which were equitized in November 2025, unwinding the corresponding hedge concurrent with the new pricing. J.P. Morgan Securities, Goldman Sachs, Citigroup, Jefferies, MUFG Securities Americas, Wells Fargo Securities, and Cantor Fitzgerald acted as bookrunners.

AI play

The financing comes as IREN continues expanding beyond Bitcoin mining into AI cloud infrastructure.

The company signed a $9.7 billion AI cloud hosting agreement with Microsoft in November 2025, a deal that sent shares up nearly 30% at announcement and prompted Bernstein to triple its price target.

In early May, IREN struck a strategic partnership with Nvidia to deploy up to 5 gigawatts of AI data-center capacity globally, with Nvidia receiving warrants potentially worth $2.1 billion. That deal pushed Bernstein to a $100 price target.

A $625 million all-stock acquisition of software services provider Mirantis followed days later, adding full-stack software capabilities to IREN's AI cloud platform.

JPMorgan previously warned that IREN's planned GPU and AI data-center spending — more than $9 billion in aggregate — could create near-term balance-sheet strain. The new financing provides additional capital as the company scales those efforts.

CoinShares estimated earlier this year that more than $70 billion in cumulative AI contracts have been announced across the listed miner cohort, with some operators on track to derive as much as 70% of their revenue from AI by the end of 2026, as The Block previously reported.