IREN refuels balance sheet with $3.6 billion financing as AI-cloud buildout accelerates
IREN moved to overhaul its capital structure on Wednesday, lining up more than $1.6 billion in equity financing and pricing $2 billion in new convertible notes as the company works to retire older, highly dilutive debt and reinforce its balance sheet ahead of a major expansion of its AI-cloud business.The company priced nearly 39.7 million IREN shares at $41.12 each in a registered direct offering to a small group of investors, a deal expected to raise over $1.6 billion at closing.The amount roughly matches what IREN needs to repurchase part of its 2029 and 2030 convertible notes, which convert at prices below $17 and have been a significant source of potential dilution. IREN is paying about $1.63 billion to retire roughly $544 million in principal.Alongside the equity raise, IREN priced two new long-dated convertible offerings: $1 billion of 0.25% notes due 2032 and $1 billion of 1.00% notes due 2033, each with an initial conversion price of approximately $51.40 per share. Buyers also have the option to purchase up to an additional $300 million across the two series. The refinancing cycle raises new equity, retires older low-price convertibles, replaces them with higher-premium paper, and adds hedges designed to soften the impact if the new notes eventually convert.The moves come less than a month after JPMorgan warned that IREN’s rapid shift into AI-cloud infrastructure could strain its balance sheet.In a Nov. 7 research note, the bank projected that IREN would need to spend more than $9 billion over the next year to expand GPU capacity and build data centers tied to its $9.7 billion Microsoft contract. Analysts said they expected the company to rely on additional capital raises as it scaled, and their model assumed a sharply higher diluted share count due to earlier issuance and note conversions.JPMorgan raised its December 2026 price target to $28 at the time, citing the momentum of the AI-cloud segment but also highlighting execution risk and ongoing funding needs.IREN shares traded around $42.75 on Wednesday afternoon, according to The Block's price page, up 4% on the day and slightly above the two-month low they hit earlier in the week.IREN stock price chart. Source: The Block/TradingViewDisclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.