IREN has secured $3 billion through a convertible senior notes offering as the company accelerates its expansion into AI cloud infrastructure. The latest fundraising move comes as demand for large-scale GPU computing continues rising across the artificial intelligence sector.
The company said the offering included a $2.6 billion base sale along with a fully exercised $400 million greenshoe option. The notes carry a 1.00% interest rate and are set to mature in 2033.
According to IREN, net proceeds from the offering totaled around $2.96 billion after fees and expenses. About $201.3 million will be used to fund capped call transactions, while the remaining capital is expected to support working capital and broader corporate operations.
The capped call transactions are designed to reduce potential shareholder dilution if the notes convert into equity later. IREN said the capped call cap price begins at $110.30 per share, roughly 100% above the company’s $55.15 share price recorded on May 11.
The company also noted that the notes include a 32.5% conversion premium and do not contain a standard investor put option outside specific change-of-control scenarios.
The funding round follows two major AI-related partnerships that significantly increased IREN’s growth ambitions and capital requirements.
Earlier this month, IREN announced a five-year AI cloud agreement with Nvidia reportedly worth $3.4 billion. As part of the deal, Nvidia also received a five-year warrant allowing it to purchase up to 30 million IREN shares at $70 each.
That partnership came shortly after IREN secured another major agreement with Microsoft involving GPU cloud infrastructure. Reports linked the Microsoft deal to nearly $9.7 billion in potential value.
Together, the Nvidia and Microsoft partnerships reportedly pushed IREN’s committed revenue pipeline above $15 billion, highlighting the company’s rapid transformation into a large-scale AI infrastructure provider.
IREN originally operated primarily as a Bitcoin mining company under the name Iris Energy. However, the company has gradually shifted toward what it calls a “Neocloud” strategy focused on AI cloud computing, GPU clusters, and large-scale data center infrastructure.
The company said its AI cloud platform is designed to support AI training and inference workloads through grid-connected data center sites located across North America, Europe, and the Asia-Pacific region.
The rapid transition from crypto mining to AI infrastructure has also increased investor focus on funding requirements. GPU-heavy AI infrastructure projects require significant capital for hardware, energy, and data center expansion, making the latest fundraising round a major step in supporting IREN’s long-term growth plans.
IREN also cautioned that its plans for using the proceeds remain forward-looking and may change over time depending on operational and market conditions.
