$3 Billion says IREN is done being a Bitcoin miner

@IREN_Ltd has closed a $3 billion convertible senior notes offering, one of the largest capital raises yet by a publicly traded Bitcoin miner pursuing an aggressive buildout of AI infrastructure. The notes carry a 1% coupon, mature in 2033, and generated net proceeds of $2.96 billion after fees and expenses. The message embedded in the deal is hard to miss: IREN is no longer a Bitcoin miner in any meaningful sense.

A War Chest Aimed at AI, Not Mining Rigs

IREN closed the private offering of $3.0 billion aggregate principal amount of 1.00% convertible senior notes due 2033 to qualified institutional buyers under Rule 144A, including a fully exercised $400 million greenshoe. IREN plans to use $201.3 million to fund capped call transactions, with the remainder set aside for working capital. The capped calls are structured to limit dilution for existing shareholders.

The capital lands on top of two transformative commercial agreements already on the books. IREN signed a multi-year agreement with Microsoft valued at approximately $9.7 billion to deliver GPU cloud infrastructure powered by Nvidia GB300 GPUs. The five-year contract includes a 20% prepayment and is expected to contribute roughly $1.94 billion in annualized run-rate revenue once fully commissioned. The GPUs are being deployed at IREN's 750MW campus in Childress, Texas.

Then, in early May, IREN signed a five-year AI infrastructure cloud services contract with Nvidia valued at approximately $3.4 billion, granting Nvidia access to managed GPU cloud services using air-cooled Blackwell systems across around 60MW at the Childress campus. The broader partnership calls for support for up to 5 gigawatts of Nvidia DSX-branded infrastructure, with Nvidia receiving a five-year right to purchase up to 30 million IREN shares at $70 each.

The Exit From Bitcoin Mining Takes Shape

The financing further cements IREN's transition from a pure-play Bitcoin miner into an AI cloud and hyperscale infrastructure operator. Bernstein expects IREN to fully exit native Bitcoin mining by 2030. Adjusted EBITDA has already been pressured by the decommissioning of mining hardware ahead of GPU installation, reflecting the real-world cost of that transition.

IREN reported $3.1 billion in annualized recurring revenue under contract and is targeting $3.7 billion by the end of 2026, a figure that includes expected Microsoft and Nvidia contract revenue alongside GPU deployments not yet generating revenue. Co-CEO Daniel Roberts has described the global landscape as "structurally short compute," pointing to data center and GPU capacity as the key bottleneck. With $3 billion now in hand, IREN is positioning itself to be a primary beneficiary of that shortage.

Sources:
IREN Closes $3.0 Billion Convertible Notes Offering (Globe Newswire via Yahoo Finance)
IREN Signs $9.7 Billion Agreement with Microsoft (IREN Official Blog)
IREN Inks AI Infrastructure Deal with Nvidia (CNBC)