Shares of high-performance computing firm Iren (Iren) fell 6% in post-market trading Tuesday after announcing an $875 million convertible debt offering.
The offer may increase to $1 billion if the initial buyers take up an option to purchase an additional $125 million, according to the news release. The notes will be unsecured and will give holders the right to convert into Iren shares or cash under certain conditions, with maturity set for July 2031.
The firm said the proceeds will fund general operations and limited call transactions, which are intended to reduce potential share dilution if the notes are converted to equity. These capped calls are also designed to offset potential cash payments if the company’s stock price rises significantly. The company added that it may seek shareholder approval to buy back shares to resolve those instruments in the future.
The decline nearly erased today’s progress in signing new multi-year artificial intelligence (AI) cloud contracts tied to Nvidia Blackwell GPU deployments. Even with the drop, the stock is still up about 1,000% from April lows as investor appetite for AI-related infrastructure turns feverish.
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