IREN, a publicly traded Bitcoin mining company that has pivoted into high-performance computing (HPC) infrastructure, announced a convertible note offering totaling $875 million, driving its share price down by approximately 6% during early trading on October 7, 2025. The offering comprises two-year convertible senior notes, maturing on July 15, 2031, with an initial conversion rate set to equate to IREN common stock at a premium over current market prices.
The convertible notes carry a base interest rate of 4.5% per annum, payable semi-annually, and include capped call transactions designed to mitigate share dilution in the event of substantial equity conversion. IREN has granted the initial purchasers a 30-day option to purchase up to an additional $125 million of notes, potentially raising the total proceeds to $1 billion.
Proceeds from the note sale will support IREN’s rapid expansion into AI-cloud services, a segment launched earlier in 2025 to leverage the firm’s proprietary data center campuses in British Columbia and Texas. The expansion plan includes the deployment of over 11,000 NVIDIA Blackwell GPUs by year-end, targeting an annualized revenue run rate (ARR) of $225 million from cloud services.
IREN’s move reflects a broader strategy to diversify beyond Bitcoin mining and capitalize on high-margin HPC demand driven by artificial intelligence workloads. Earlier this year, IREN secured multi-year contracts with leading AI companies, anchoring its cloud revenue projections and boosting investor confidence in its long-term growth thesis.
“This convertible note transaction provides the necessary capital to scale our HPC operations while maintaining a flexible balance sheet,” said IREN CEO Daniel Roberts. “The capped calls ensure that equity dilution is managed, aligning our financing strategy with shareholder interests as we continue to execute on our AI-cloud roadmap.”
Despite the short-term stock pullback, IREN’s shares have gained over 1,200% since the launch of its AI-cloud initiative in April 2025, reflecting strong market appetite for integrated crypto-mining and HPC solutions. Trading volumes during the offering announcement surpassed the 30-day average, indicating heightened investor engagement.
Market analysts view the note sale as a prudent step to secure growth capital without immediate equity dilution. Bernstein analysts maintain an “outperform” rating on IREN, citing the company’s unique combination of digital asset operations and emerging cloud computing revenues as a key differentiator.
The convertible offering follows a trend of crypto miners and infrastructure providers tapping debt markets to fund expansion amid rising electricity costs and environmental scrutiny. IREN has prioritized the use of renewable energy sources at its facilities, with over 60% of its power mix derived from hydroelectric and wind generation as of mid-2025.
Looking ahead, IREN plans to reinvest excess cash flows into strategic acquisitions of smaller HPC operators and to explore tokenization of compute resources on blockchain platforms. The company also aims to increase its Bitcoin hash rate capacity by 20% in the first half of 2026, leveraging the latest ASIC mining hardware upgrades.
“Balanced with our commitments to sustainable operations and shareholder returns, this financing positions IREN to lead in the converging markets of crypto mining and AI computing,” Roberts added.
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