The mining company launched a $2 billion convertible note offering on Wednesday while simultaneously conducting a share sale targeting $1.63 billion in proceeds.
Crypto News
IREN shares recovered Wednesday after the Bitcoin miner revealed plans to raise $3.6 billion through combined share sales and convertible debt offerings. The company aims to deploy computing infrastructure to meet surging artificial intelligence demand.
IREN stock jumped 7.6% to peak at $44.25 during Wednesday trading, settling at $43.96 by close for a 6.9% gain. Shares fell more than 15% Tuesday following the initial capital raising announcement.
The mining company launched a $2 billion convertible note offering on Wednesday while simultaneously conducting a share sale targeting $1.63 billion in proceeds. IREN stated it will utilize equity proceeds to repurchase portions of the convertible notes.
A growing number of miners have assumed debt to pivot operations toward meeting AI demands. The Miner Mag estimated that combined debt and convertible note offerings from 15 public miners reached $4.6 billion in Q4 2024, $200 million in early 2025, and $1.5 billion in Q2 2025.
Share and note offerings typically spook investors due to dilution concerns and potential devaluation of existing holdings. However, IREN's stock recovery may be connected to sweeping balance sheet restructuring accompanying the fundraising moves.
CNBC markets commentator Jim Cramer told followers to sell any company conducting financing deals like IREN. However, social media users quickly invoked the internet's inverse Cramer effect, wherein the stocks he criticizes often experience subsequent gains.
The share price remains down from its October all-time high exceeding $62. IREN joins other Bitcoin miners racing to expand computing capacity for both cryptocurrency mining and AI processing workloads.
The company plans to spend $174.8 million on capped call transactions aimed at reducing dilution risks. This strategy appears designed to instill long-term price confidence among shareholders.
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