IREN, a Nasdaq-listed bitcoin mining and AI company, announced plans to raise $450 million

IREN, a Nasdaq-listed company focused on bitcoin mining and AI, announced plans to raise $450 million

Nasdaq-listed IREN, a company concentrating on bitcoin mining and AI, disclosed plans on Tuesday to raise $450 million through a private offering of convertible senior notes to qualified institutional investors.

The company also has the option to offer an additional $50 million to initial buyers within 13 days from the issuance date, as stated in its press release.

IREN intends to allocate a portion of the net proceeds to execute capped call transactions. These transactions are designed to minimize share dilution resulting from convertible note conversions and to offset potential cash payments if the notes are settled above their principal amount.

Moreover, the company aims to enter a prepaid forward share repurchase agreement with a maximum size of $100 million. This agreement is intended to facilitate investors in hedging their economic exposure to the shares of the company and potentially stabilize share prices. The remaining net proceeds will be used for general corporate purposes and working capital.

IREN, previously known as Iris Energy, operates data centers across 2,000 acres in the U.S. and Canada, securing 2,910 megawatts of grid-connected power. The company's primary focus areas are bitcoin mining, AI cloud services, and AI data centers.

Shares of IREN closed up 1.45% at $10.49 on the Nasdaq on Tuesday, according to Google Finance data. The stock has remained nearly flat year-to-date, posting a 0.29% gain.