IREN Closes $3B Convertible Notes to Fund AI Shift

IREN Limited closes a $3 billion convertible senior notes offering to accelerate its transformation from cryptocurrency mining to AI infrastructure services. The convertible notes carry a 1% annual coupon and mature in 2033, with a conversion premium of 32.5% above IREN's share price. The notes were sold privately to qualified institutional buyers under Rule 144A.

Net proceeds from the offering total $2.96 billion after fees and expenses. The company allocates $201.3 million from the proceeds to fund capped call transactions with a cap price of $110.30 per share. That cap represents a 100% premium over the $55.15 share price recorded on May 11. The capped call structure reduces potential dilution from note conversions while providing upside participation for existing shareholders.

This capital raise follows a rapid succession of AI agreements. In November 2025, IREN signed a $9.7 billion AI cloud hosting agreement with Microsoft. The company then reached a deal with Nvidia in early May to deploy up to 5 gigawatts of AI data-center capacity globally.

The Nvidia agreement includes a $3.4 billion five-year AI cloud contract for air-cooled Blackwell GPUs along with a five-year warrant for up to 30 million IREN shares at $70 each. Days after announcing the Nvidia partnership, IREN completed a $625 million all-stock acquisition of software services provider Mirantis.

IREN stock falls more than 8% on Friday amid a broader crypto stock swoon and recently trades at $53.55. Shares rise more than 9% over the last month and 15% in the last six months.

Major Bitcoin mining firms increasingly embrace demand for AI compute. Some companies, like Keel Infrastructure formerly known as Bitfarms, completely shutter their mining businesses in favor of serving AI and high-performance computing needs. Analysts at Bernstein expect IREN to fully exit Bitcoin mining by 2030 as it gradually cuts its mining focus and repurposes hardware for AI and HPC purposes.