IREN Ltd. launched a private offering of $2 billion in convertible senior notes due 2033. Initial purchasers hold a 13-day option to buy up to an additional $300 million in notes.
The company will allocate the proceeds toward general corporate purposes and working capital. IREN also plans to fund capped call transactions to reduce potential shareholder dilution upon conversion.
IREN shares fell 6% during Monday's trading session following the announcement. Investors often react negatively to convertible debt due to concerns over future equity dilution.