Bitcoin miner IREN completes $3 billion convertible bonds, adds more for AI hashrate expansion

The bitcoin mining company IREN, listed on Nasdaq, completed a $3 billion convertible senior notes issuance on May 14. In a company press release, the firm said the offering size is the combined amount after the original $2.6 billion base notes plus the full exercise of a $400 million incremental option. The coupon is 1.00%, with maturity in 2033. Net proceeds are about $2.96 billion. The joint bookrunners include JPMorgan, Goldman Sachs, Citibank, Jefferies, MUFG, Wells Fargo, and Cantor Fitzgerald—seven firms in total.

32.5% conversion premium; capped call strike capped at $110.30

The convertible bonds were issued via a private placement under Rule 144A to qualified institutional buyers, with a conversion premium of 32.5%. IREN also conducted a capped call hedge. The initial call cap price is $110.30, equivalent to a 100% premium to the May 11 closing price of $55.15, serving as a buffer against dilution risk when converting in the future. The total capped call cost is $201.3 million, funded from the proceeds of this offering. The remaining funds will be used for general corporate purposes and working capital.

Tying in NVIDIA’s $3.4 billion AI cloud contract, Dell’s $3.5 billion GPU procurement

IREN has recently been expanding its AI infrastructure at a fast pace. In early May, the company announced a 5-year AI cloud services agreement with NVIDIA worth $3.4 billion, and plans to purchase about $3.5 billion worth of GPUs and related equipment from Dell. This media outlet previously reported that NVIDIA and IREN are jointly advancing a long-term strategic partnership, with both sides jointly developing AI data center capacity on the scale of 5 gigawatts.

In its corporate profile, IREN positions itself as a “vertically integrated AI cloud provider,” offering large-scale data centers and GPU clusters for AI training and inference. Its operating locations span North America, Europe, and the Asia-Pacific regions with abundant renewable energy. In addition to the NVIDIA contract, in November 2025 it also signed a $9.7 billion AI cloud order with Microsoft.

Mining-company financing structure: 1% coupon, capped call hedging, shift focus to AI hashrate

This $3 billion convertible bond offering is the largest single financing this year within the bitcoin miner category. The 1.00% coupon reflects strong institutional demand for the current AI hashrate theme. The 32.5% conversion premium and the $110.30 capped call design also reduce the impact of future equity dilution. Like many other miners, IREN’s operational focus has clearly shifted from bitcoin mining to AI cloud and HPC data center services.

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