Bitcoin miner Iren (IREN) plans to raise up to $2.3 billion by selling convertible notes to refinance existing debt as hash prices fall to five-year lows, hurting revenue.
The company, which also provides processing power for training artificial intelligence models, plans to issue $1 billion of convertible senior notes due 2032 and $1 billion of private placement bonds due 2033 to institutional buyers. The company said buyers could spend an additional $150 million on each series. It also plans to sell shares to fund a planned repurchase of some of its outstanding 2029 and 2030 convertible notes.
The company’s shares fell 5% in Tuesday trading to around $45, more than 40% below their November peak. The drop likely reflects delta hedging by banks involved in the deal, a short-term dynamic that also occurs when other miners issue convertible bonds.
Hashprice measures the expected daily value of 1 terahash of computing power per second. It reflects how much revenue a miner can earn from a specific amount of computing power, and rises with the price of Bitcoin and the amount of fees, and falls with increasing mining difficulty. It fell to a five-year low last month.
The final terms of the debt sale, including coupon and conversion premium, will be determined at the time of pricing. The structure is similar to the zero-coupon convertible bonds the company issued in October, suggesting it is again targeting low-cost financing relative to the 3.25% and 3.50% coupons of the notes it intends to retire. According to the announcement, there are plans to cap call option transactions to limit dilution.