IREN Limited has successfully closed a substantial $3 billion offering of convertible senior notes aimed at financing its strategic transition from cryptocurrency mining to AI infrastructure services. The move underscores the company’s commitment to capitalizing on the burgeoning demand for artificial intelligence technologies.
The offering of convertible notes, which features a 1% annual coupon and a maturity date set for 2033, was executed under Rule 144A, targeting qualified institutional buyers. After accounting for fees and expenses, net proceeds reached approximately $2.96 billion. IREN allocated $201.3 million of this amount to capped call transactions that aim to minimize potential dilution from note conversions, while also considering the interests of existing shareholders. The capped call transactions set a cap price of $110.30 per share, reflecting a 100% premium above the share price of $55.15 recorded on May 11.
This capital influx closely follows a series of significant agreements designed to reshape IREN’s business model. Notably, in November 2025, the firm entered into a groundbreaking $9.7 billion AI cloud hosting agreement with Microsoft. Earlier this month, IREN also partnered with Nvidia, a deal that presents an ambitious plan to deploy up to 5 gigawatts of AI data-center capacity globally. The Nvidia agreement encompasses a five-year AI cloud contract valued at $3.4 billion for air-cooled Blackwell GPUs, along with a five-year warrant for up to 30 million IREN shares priced at $70 each.
In conjunction with these partnerships, IREN recently completed a significant acquisition of Mirantis, a software services provider, for $625 million in an all-stock deal.
Despite the ambitious plans and partnerships, IREN’s stock has faced some volatility, experiencing a decline of over 8% recently, trading at approximately $53.55. Yet, the company’s shares have seen an upward trajectory of more than 9% over the past month and 15% over the last six months, according to Yahoo Finance data.
The evolving landscape of AI technology has prompted several major Bitcoin mining firms, including IREN, to pivot towards AI compute services. Analysts have noted that many such firms are signing multi-billion-dollar contracts, with some like Keel Infrastructure (formerly Bitfarms) transitioning entirely away from mining to focus solely on AI and high-performance computing (HPC) needs. Investment bank Bernstein has forecasted that IREN could gradually withdraw from Bitcoin mining by 2030, steadily repurposing its mining hardware for AI and HPC applications in the years to come.
