IREN Raises $2 Billion Through Convertible Bond Issue
Date: 2025-12-03 Author: Henry Casey Categories: BUSINESS
IREN, a company specializing in the construction of Bitcoin mining infrastructure and data centers, has unveiled plans to issue convertible bonds worth up to $2 billion in a private placement. This initiative involves the issuance of two identical series of notes: one maturing in 2032 and the other in 2033. The total issue size is $1 billion each. In addition, initial investors have the right to purchase up to $300 million of notes from both series.
As stated in the announcement, the bonds will be unsecured and will bear interest. Holders will have the option to convert them into IREN common shares or request redemption in cash if certain conditions are met. The company will also be able to initiate an early buyback if its share price exceeds 130% of the established conversion level.
In addition to raising new capital, IREN intends to conduct a share placement through a registered direct offering. Proceeds from this transaction are planned to be used to partially repurchase previously issued debt instruments—convertible bonds maturing in 2029 and 2030. Repurchase agreements will be concluded individually with bondholders. The company emphasizes that parties to such agreements may engage in hedging transactions in the market, which could potentially impact the price of IREN shares and bonds.
The funds raised are expected to cover several key areas. First, these are limited-call transactions, through which the company hopes to reduce potential shareholder dilution during future debt conversions. Second, IREN plans to repurchase a portion of its existing issues to optimize its leverage. The remainder will be used for general corporate purposes. The statement emphasizes that counterparty activity under the restricted buyout transactions could lead to changes in the market value of shares and bonds, as it involves significant hedging transactions.
The company clarified that the bond issue and share placement are independent of each other and will be completed in parallel.
Earlier, in October 2025, IREN raised $875 million in debt financing by issuing shares to expand its mining capacity. A month later, the company entered into a $9.7 billion agreement with Microsoft to provide cloud-based AI processing power. Under the terms of the contract, Microsoft will have access to NVIDIA GPUs for five years, while IREN will jointly purchase $5.8 billion worth of equipment from Dell Technologies.
