Soars 6.91% as Company Completes $1.6 Billion Equity Raise

TLDR

IREN raises $1.6B and $2B in notes for AI-cloud expansion and debt reduction.
IREN stocks surge 6.91% after announcing major capital restructuring.
IREN targets AI-cloud growth with $3.6B capital raise, eyes $9B more.
IREN issues $2B in new notes, reduces future dilution for AI expansion.
JPMorgan raises IREN’s 2026 price target amid capital restructuring plans.

IREN Limited (IREN) closed at $43.96 on Wednesday, marking a 6.91% increase in stock value.

IREN Limited, IREN
This uptick comes as the company announced a major overhaul of its capital structure. The company raised over $1.6 billion through an equity offering and priced $2 billion in new convertible notes. These moves are part of IREN’s strategy to retire highly dilutive debt while bolstering its balance sheet for an expansion in the AI-cloud business.

IREN’s $1.6 Billion Equity Offering and Convertible Note Issuance

IREN priced nearly 39.7 million shares in a direct offering at $41.12 each. The offering is expected to raise approximately $1.6 billion once closed. This capital will primarily be used to repurchase part of IREN’s 2029 and 2030 convertible notes. These notes, which convert at prices below $17, have been a major source of dilution for IREN. The company is paying around $1.63 billion to retire about $544 million in principal, reducing future dilution risks.

IREN issued two new long-dated convertible notes, valued at $1 billion each. One set of notes carries a 0.25% coupon due in 2032, and the other has a 1.00% coupon due in 2033. The initial conversion price for both series of notes is set at approximately $51.40 per share. Investors also have the option to purchase up to $300 million more across the two offerings.

This move helps IREN retire older, low-priced convertibles while replacing them with higher-premium paper. The new structure is designed to limit the impact of future note conversions. The company is also using hedges to cushion any potential dilution caused by the conversion of these new notes.

IREN’s Strategy for AI-Cloud Expansion and JPMorgan’s Forecast

This financial restructuring is critical as IREN seeks to expand its AI-cloud infrastructure. The company plans to invest significantly in GPU capacity and data center construction, backed by its $9.7 billion contract with Microsoft. However, the need for further capital raises is evident, as JPMorgan recently projected that IREN would require more than $9 billion in the next year to support this expansion.

Despite the potential strain on its balance sheet, IREN is confident in its ability to execute its AI-cloud strategy. Analysts from JPMorgan raised the company’s price target for December 2026 to $28, acknowledging the momentum in the AI-cloud segment. However, they also highlighted the execution risks and the ongoing funding requirements that will continue to impact IREN’s financial performance.

IREN’s stock surge follows these strategic moves and signals that the company is positioning itself for future growth in a rapidly evolving market. As it focuses on scaling its AI-cloud business, IREN is working to balance its financial structure while maintaining growth potential.