Bitcoin Miner IREN Closes $3 Billion Convertible Notes Offering to Fuel AI Transformation

In brief

• IREN Limited closed a $3 billion convertible senior notes offering to fund AI infrastructure expansion.
• Net proceeds totaled $2.96 billion, with $201.3 million allocated to capped call transactions.
• The offering follows major deals with Nvidia and Microsoft for AI cloud services.

Bitcoin mining firm IREN Limited said Thursday that it closed a $3 billion convertible senior notes offering, securing capital 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, generating net proceeds of $2.96 billion after fees and expenses.

The company allocated $201.3 million from the proceeds to fund capped call transactions with a cap price of $110.30 per share—representing a 100% premium over the $55.15 share price recorded on May 11. The capped call structure is designed to reduce potential dilution from note conversions while providing upside participation for existing shareholders.

The capital raise follows a rapid succession of AI agreements that have reshaped IREN's business model. In November 2025, the company signed a $9.7 billion AI cloud hosting agreement with Microsoft. This was followed by a deal with Nvidia in early May to deploy up to 5 gigawatts of AI data-center capacity globally.

The Nvidia deal includes a $3.4 billion five-year AI cloud contract for air-cooled Blackwell GPUs, and 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 is down more than 8% so far Friday amid a broader crypto stock swoon, recently trading hands at $53.55. Shares are up more than 9% over the last month, and 15% in the last six months, per Yahoo Finance data.

Major Bitcoin mining firms have broadly embraced the growing demand for AI compute, with many signing multi-billion-dollar deals—and some, like Keel Infrastructure (formerly Bitfarms) completely shuttering their mining businesses in favor of serving AI and high-performance computing (HPC) needs.

In late April, analysts at investment bank Bernstein said that they expect IREN to fully bow out of Bitcoin mining by the year 2030, gradually cutting its mining focus in the coming years as it repurposes its hardware for AI and HPC purposes.

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