Bitcoin miner Iren (IREN) plans to raise up to $2.3 billion through a convertible note sale to refinance existing debt as the hash price falls to its lowest level in five years, hitting revenue.
The company, which also offers processing power to train AI models, is looking to issue $1 billion of convertible senior notes due 2032 and $1 billion due 2033 in a private placement to institutional buyers. Buyers can keep an additional $150 million from each series, the company said. It also plans to sell shares to fund the planned repurchase of some outstanding 2029 and 2030 convertible notes.
The company’s shares fell 5% to around $45 in trading Tuesday and are more than 40% below their November high. The drop likely reflects delta hedging by the banks involved in the deal, 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 income a miner can expect from a specific amount of hashrate and rises with the price and volume of bitcoin fees, and falls as mining difficulty increases. Last month it fell to its lowest level in five years.
The final terms of the debt sale, including the coupon and conversion premium, will be set based on the price. The structure mirrors the company’s zero-coupon convertible issued in October, suggesting it is again targeting lower-cost financing relative to the 3.25% and 3.50% coupons on the bonds it intends to retire. According to the announcement, limited purchase transactions are planned to limit dilution.
