High-Performance Computing Firm Iren (Iren) stock slipped 6% on Tuesday after the market after announcing a $ 875 million convertible debt offer.
The offer could increase to $ 1 billion if the first buyers take an opportunity to buy another $ 125 million, the press release said. The notes will be unsecured and give holders the right to convert to Iren shares or cash under certain conditions, with maturity of July 2031.
The company said that revenue will finance general operations and uncovered call transactions, which are intended to reduce potential share dilution if the notes are converted into equity. These uncovered calls are also designed to equalize potential cash payments if the company’s share price is climbing significantly. The company added that it can seek shareholder approval to repurchase shares to run these instruments in the future.
The fall almost deleted today’s progress in signing new perennial artificial intelligence (AI) Sky contracts tied to NVIDIA Blackwell GPU implementations. Even with the fall, the stock is still up to about 1,000% from April-low, as investor appetite on AI-related infrastructure became a fever.
Read more: Bitcoin miner Iren jumps 9% after securing new perennial AI-Sky contracts
