Bitcoin miner Iren (IREN) plans to raise up to $2.3 billion through the sale of convertible notes to refinance existing debt as the hash price falls to a five-year low, impacting its revenue.
The company, which also offers processing power for training AI models, plans to issue $1 billion of convertible senior notes due 2032 and $1 billion due 2033 in a private placement to institutional buyers. Buyers could acquire an additional $150 million for each series, the company said. It also plans to sell shares to finance the planned repurchase of certain outstanding convertible bonds maturing in 2029 and 2030.
The company’s shares fell 5% to around $45 in Tuesday trading 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 mining companies issue convertible bonds.
Hashprice measures the expected daily value of one terahash per second of computing power. It reflects the amount of revenue a miner can expect from a specific amount of hashrate and increases with the price and fee volume of bitcoin, and decreases as mining difficulty increases. It fell last month to its lowest level in five years.
The final terms of the sale of the debt, including the coupon and the conversion premium, will be set at the price. The structure mirrors the company’s zero-coupon convertible issue issued in October, suggesting it is once again targeting lower-cost financing compared to the 3.25% and 3.50% coupons on the notes it aims to retire. Capped call transactions are planned to limit dilution, according to the announcement.
