IREN Raises $2.96B with $3B Convertibles to Fund AI Cloud

IREN Limited closed a $3.0 billion convertible senior notes offering, generating roughly $2.96 billion in net proceeds. The notes carry a 1.00% coupon and mature in 2033. They were sold in a Rule 144A private placement to qualified institutional buyers and were priced with a 32.5% conversion premium.

The deal was originally sized at $2.6 billion and increased when the full $400 million greenshoe was exercised. IREN entered into capped call transactions that set a cap price of $110.30 per share, about double the company’s last reported sale price of $55.15 on May 11. IREN allocated $201.3 million of the net proceeds to fund those capped calls and directed the remainder for general corporate purposes and working capital.

The company also terminated a portion of capped calls tied to its existing 3.50% convertible notes due 2029. A portion of those 2029 notes were converted into equity in November 2025, and IREN unwound the related hedge arrangements as it set the new pricing.

The financing comes as IREN expands beyond Bitcoin mining into a vertically integrated AI cloud infrastructure business. In November 2025 the company signed a $9.7 billion AI cloud hosting agreement with Microsoft. In early May IREN announced a strategic partnership with Nvidia to deploy up to 5 gigawatts of AI data-center capacity globally, with Nvidia receiving warrants that could be valued at as much as $2.1 billion. Days later IREN agreed to acquire Mirantis in an all-stock transaction valued at $625 million.

Some analysts and banks have warned that planned GPU and AI data-center spending, which IREN and others estimate will exceed $9 billion in aggregate, could create near-term pressure on the company’s balance sheet. Market estimates indicate listed miners have announced more than $70 billion in AI-related contracts, and some operators could derive as much as 70% of revenue from AI by the end of 2026.

J.P. Morgan Securities, Goldman Sachs, Citigroup, Jefferies, MUFG Securities Americas, Wells Fargo Securities and Cantor Fitzgerald acted as bookrunners on the offering. The convertible structure and capped calls provide immediate liquidity and limit conversion-related dilution up to the $110.30 cap; appreciation of the stock beyond that level would reopen dilution and could create cash obligations for the company.