High-performance computing and bitcoin miner IREN (IREN) saw its stock decline 6% in after-hours trading after announcing an $875 million convertible note offering.
The deal could increase to $1 billion if initial investors exercise an option for an additional $125 million. The unsecured notes allow holders to convert into IREN shares or cash under specific conditions, with maturity set for July 2031.
IREN said proceeds will be used for general operations and capped call transactions, designed to mitigate potential share dilution if the notes are converted. The company also indicated it may seek shareholder approval to repurchase shares in the future to settle these instruments.
The after-hours drop erased most of the stock’s earlier gains from news of new multi-year AI cloud contracts featuring Nvidia Blackwell GPU deployments. Despite the pullback, IREN shares remain up roughly 1,000% since April, fueled by investor enthusiasm for AI and high-performance computing infrastructure.
