IREN Shares Drop 6% After $875M Convertible Note Offering Announcement

High-performance computing firm IREN saw its stock decline 6% in post-market trading following the announcement of an $875 million convertible debt offering. The offering could expand to $1 billion if initial purchasers exercise an option for an additional $125 million. The unsecured notes, maturing in July 2031, allow conversion into shares or cash under specific conditions.

Proceeds will support general operations and capped call transactions aimed at mitigating share dilution risks. The company also signaled potential future share buybacks to settle these instruments. This downturn nearly erased gains from newly signed AI cloud contracts linked to Nvidia Blackwell GPU deployments, though the stock remains up roughly 1,000% from April lows amid surging investor interest in AI infrastructure.