IREN Stock Rebounds After $3.6B Debt and Equity Financing
Shares of Bitcoin miner IREN rose on Wednesday after the company detailed plans to raise $3.6 billion via a mix of equity issuance and a convertible debt sale to expand computing capacity for artificial intelligence workloads.
IREN (IREN) climbed as much as 7.6% to an intraday high of $44.25 before closing at $43.96, up 6.9% on the day. The move followed a decline of more than 15% on Tuesday after the company signaled it would pursue a new capital raise.
On Wednesday, IREN said it launched a $2 billion convertible note offering alongside a concurrent share sale targeting an additional $1.63 billion.
Shares in Bitcoin miner IREN have made a comeback after a decline on Tuesday. Source: Google Finance
Sector-wide, public mining firms have increasingly tapped debt markets to support pivots toward AI-related infrastructure. The Miner Mag estimated in October that combined debt and convertible-note issuance across 15 listed miners totaled $4.6 billion in Q4 2024, $200 million at the start of 2025, and $1.5 billion in Q2 2025.
Debt and equity issuance raises dilution concerns
New stock and note offerings can pressure existing shareholders due to potential dilution. IREN said part of the equity proceeds will be used to repurchase the convertible notes as part of a broader balance-sheet restructuring.
The company also plans to spend $174.8 million on capped call transactions aimed at mitigating dilution risk and supporting longer-term price confidence for shareholders.
Market reaction and commentary
CNBC markets commentator Jim Cramer said in an X post on Wednesday that investors should sell shares of companies pursuing financings, citing IREN as an example: “Year of Magical Investing is back. Sell any company NOW that is doing a financing (a la IREN) or has big insider selling. Stay close here!!!”
Some users on X referenced the so-called “inverse Cramer” effect, a social media meme suggesting that stocks criticized by Cramer might subsequently rise.
Despite Wednesday’s rebound, IREN shares remain below their all-time high above $62 reached in October.
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