Bitcoin mining company IREN Limited has announced the successful closure of a $3 billion convertible senior notes offering, a significant step in its strategy to pivot from cryptocurrency mining to AI infrastructure services. The newly issued convertible notes come with a 1% annual coupon and are set to mature in 2033. They feature a conversion premium of 32.5% over IREN’s current share price, reflecting a growing interest in the firm’s transformative journey.
Sold privately to qualified institutional buyers under Rule 144A, the offering generated net proceeds of approximately $2.96 billion after accounting for fees and expenses. Of this capital, the company earmarked $201.3 million for capped call transactions, which have a cap price of $110.30 per share—equating to a 100% premium over the $55.15 share price noted on May 11. This capped call structure aims to minimize potential dilution from the conversions of the notes while still allowing existing shareholders to benefit from potential upside.
This capital infusion comes on the heels of a series of lucrative AI agreements that have significantly altered IREN’s business model. Notably, in November 2025, the company embarked on a $9.7 billion AI cloud hosting agreement with tech giant Microsoft. This partnership was quickly followed by a deal with Nvidia, announced in early May, which involves deploying up to 5 gigawatts of AI data-center capacity worldwide. The Nvidia engagement also includes a $3.4 billion five-year AI cloud contract for air-cooled Blackwell GPUs, alongside a five-year warrant for up to 30 million shares at $70 each.
Days after revealing the Nvidia partnership, IREN further expanded its portfolio by completing a $625 million all-stock acquisition of Mirantis, a software services provider. However, in the wake of these announcements, IREN’s stock saw an over 8% decline on Friday amidst a broader downturn in cryptocurrency stocks, trading around $53.55. Nevertheless, shares have experienced a notable increase of more than 9% in the past month and a 15% rise over the last six months, based on data from Yahoo Finance.
As the demand for AI computing continues to escalate, several major Bitcoin mining firms are pivoting to embrace this trend. Some companies, like Keel Infrastructure (formerly Bitfarms), have completely shut down their mining operations in favor of AI and high-performance computing (HPC) services. Analysts at investment bank Bernstein have projected that IREN could phase out its Bitcoin mining activities entirely by 2030, gradually shifting its focus as it repurposes its existing hardware to meet the growing needs of AI and HPC applications.
