IREN, the company shifting from Bitcoin mining to AI cloud services, has raised $3 billion through a convertible senior notes offering to fund its GPU-heavy data center buildout.
Deal Details: Low Coupon, High Premium, Anti-Dilution
The notes carry a 1.00% coupon, mature in 2033, and include a $2.6 billion base offering plus a fully exercised $400 million greenshoe. Net proceeds total about $2.96 billion after fees. IREN plans to use $201.3 million for capped call transactions, with the remainder for working capital and general corporate needs.
The capped calls are tied to the notes and aim to reduce potential dilution upon conversion. The cap price starts at $110.30 per share, which is 100% above the $55.15 closing price on May 11. Conversion premium stands at 32.5%, with no investor put option except in standard change-of-control events. The offering was sold privately under Rule 144A.
AI Cloud Deals Pile Up: $3.4B Nvidia + $9.7B Microsoft
The raise comes days after IREN announced a five-year $3.4 billion AI cloud agreement with Nvidia. Nvidia also received a five-year warrant to buy up to 30 million IREN shares at $70 each. Earlier, IREN signed a massive $9.7 billion GPU cloud deal with Microsoft. Together, these partnerships pushed IREN's committed revenue above $15 billion, as the company targets large-scale AI data center growth.
From Mining to 'Neocloud': Capital Needs Drive Pivot
IREN, formerly Iris Energy, started as a Bitcoin miner. It now calls its model “Neocloud” — using energy and data center sites to serve AI workloads. As it moves toward GPU-heavy infrastructure, investors have focused on funding risk. The latest note sale gives it a larger cash base for the AI cloud buildout. IREN says its platform is built around large-scale data centers and GPU clusters for AI training and inference, backed by grid-connected land and power across North America, Europe and APAC. The company cautions that plans for the proceeds remain forward-looking.