Bitcoin
And AI data center operator Iren plans to raise $ 450 million through a private sale of convertible seniorotates, the company said in a press release.
The notes that are due in 2029 will be offered to qualified institutional buyers and be able to expand by another $ 50 million if the first buyers take an optional allocation.
The unsecured notes pay semi -annual interest and can be converted to the Irish ordinary shares under certain conditions. The company has the opportunity to redeem the notes that start in mid -2028 if its stock trades with 30% above the conversion price for a fixed period.
Iren said it intends to use the proceeds to a few financial strategies intended to equalize potential equity dilution and market risk. These are uncovered call transactions and a prepaid repayment of stock.
These hedges are designed to reduce the impact of future note conversions and may support the company’s share price by limiting the number of new shares issued.
“If the market price per ordinal share of IREN, measured under the conditions of the uncovered call transactions, exceeds the CAP price for the uncovered call transactions, there would never be dilution, and/or there would be no displacement of such potential cash payments,” the company wrote.
Earlier this year, Iren interrupted its Bitcoin Mining Expansion to favor AI Data Centers. Its shares are down 6.8% in front of the opening bell.
