IREN prices $2.6 billion convertible notes offering

IREN Limited (NASDAQ: IREN) announced the pricing of $2.6 billion in convertible senior notes due 2033, an increase from the previously announced $2 billion offering size. The notes carry a 1.00% annual interest rate and were offered privately to qualified institutional buyers.

The notes have an initial conversion price of approximately $73.07 per ordinary share, representing a 32.5% premium over the $55.15 closing price on May 11, 2026. The conversion rate is set at 13.6848 ordinary shares per $1,000 principal amount of notes.

IREN granted initial purchasers an option to purchase up to an additional $400 million principal amount of notes within 13 days of issuance. The company estimates net proceeds of approximately $2.57 billion, or $2.96 billion if the option is fully exercised, after deducting discounts and expenses.

The company will use approximately $174.5 million of proceeds to fund capped call transactions with a cap price of $110.30 per share, representing a 100% premium over the May 11 closing price. The remaining proceeds will be used for general corporate purposes and working capital.

The notes will mature on December 1, 2033, with interest payable semi-annually. Noteholders may convert their notes under certain conditions before September 1, 2033, and at any time thereafter until maturity. IREN may redeem the notes starting June 6, 2030, under specific conditions.

In connection with the offering, IREN terminated a portion of existing capped call transactions related to its 2029 convertible notes. The issuance is scheduled to settle on May 14, 2026, subject to customary closing conditions.

IREN describes itself as a vertically integrated AI cloud provider operating data centers and GPU clusters across North America, Europe and Asia-Pacific regions.

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