Nasdaq-listed bitcoin mining and AI corporation, IREN, has recently made public its intention to raise $450 million via a private offering of convertible senior notes targeted at qualified institutional investors, according to a press release issued on Tuesday.
The company also revealed the possibility of extending an additional offer of $50 million to initial buyers within the first 13 days post issuance. Part of the raised capital will be used by IREN to carry out capped call transactions, designed to limit share dilution resulting from convertible note conversions and balance potential cash outflows if the notes are redeemed above their principal amount.
Furthermore, the company plans to initiate a prepaid forward share repurchase agreement valued up to $100 million. This is aimed at enabling investor hedging and possibly stabilizing share prices. The remaining funds will be directed towards general corporate purposes and used as working capital.
Previously known as Iris Energy, IREN manages data centers spanning 2,000 acres across the U.S. and Canada, with a secured grid-connected power of 2,910 megawatts. The company’s current areas of focus include bitcoin mining, AI cloud services, and AI data centers. As per Google Finance data, IREN shares closed up at $10.49 on the Nasdaq on Tuesday, registering a marginal year-to-date gain of 0.29%.
