Bitcoin miner Iren (IREN) plans to raise as much as $2.3 billion through a convertible note sale to refinance existing debt as the hash price falls to a five-year low, hitting revenue.
The company, which also offers processing power for training AI models, is looking to issue $1 billion in convertible senior notes due 2032 and $1 billion due 2033 in a private placement to institutional buyers. Buyers can take an additional $150 million of each series, the company said. It also plans to sell shares to finance the planned buyback of some outstanding 2029 and 2030 convertible bonds.
The company’s shares fell 5% to around $45 in Tuesday trading and are more than 40% below their peak in November. The decline likely reflects delta hedging by banks involved in the trade, a short-term dynamic also seen when other miners issue convertibles.
Hashprice measures the expected daily value of one terahash per second of computing power. It reflects how much earnings a miner can expect from a certain amount of hashrate and increases with bitcoin’s price and fee volume, and decreases as mining difficulty increases. It fell to a five-year low last month.
Final terms of the debt sale including coupon and conversion premium will be determined for pricing. The structure mirrors the company’s zero-coupon convertible issued in October, suggesting it is again targeting lower costs relative to the 3.25% and 3.50% coupons on the notes it aims to retire. Limited call transactions are planned to limit dilution, according to the announcement.
