IREN Stock Rebounds 7% After Initial Drop Following $3.6 Billion Capital Raise Announcement
Bitcoin miner IREN's shares recovered Wednesday, climbing nearly 7% after falling over 15% the previous day when the company announced plans to raise $3.6 billion through debt and equity offerings.
IREN shares closed up 6.9% at $43.96 on Wednesday, rebounding from a sharp 15% decline the previous day after the Bitcoin miner announced a massive $3.6 billion capital raising initiative [1].
The company plans to raise $2 billion through a convertible note offering and an additional $1.63 billion via share sales as it seeks to deploy computing infrastructure to meet growing artificial intelligence demand [1].
The initial stock drop reflected typical investor concerns about dilution from new share issuance. However, IREN's strategic balance sheet restructuring appears to have reassured the market. The company announced it will use equity proceeds to repurchase existing convertible notes and allocate $174.8 million for capped call transactions designed to reduce dilution risks [1].
IREN's move follows a broader trend among public Bitcoin miners pivoting toward AI infrastructure. According to The Miner Mag, 15 public mining companies raised a combined $4.6 billion through debt and convertible notes in Q4 2024 alone [1].
Despite the recovery, IREN shares remain significantly below their October all-time high of over $62 [1].
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