Shares in IREN rebounded on Wednesday after the Bitcoin miner announced plans to raise $3.6 billion through share sales and a convertible debt offering, aiming to deploy computers to meet increasing demand for artificial intelligence.
IREN (IREN) surged 7.6% to a high of $44.25 during Wednesday’s trading, ultimately closing at $43.96 for a 6.9% increase. This follows a drop of over 15% on Tuesday after the company revealed its capital raising initiatives.
On Wednesday, IREN disclosed that it was initiating a new $2 billion convertible note offering and concurrently conducting a share sale to secure an additional $1.63 billion.
Many miners have been accruing debt to adapt and fulfill AI demands, with The Miner Mag estimating that the combined debt and convertible-note offerings from 15 public miners amounted to $4.6 billion in Q4 2024, $200 million at the beginning of 2025, and $1.5 billion in Q2 2025.
Concerns Over Miner’s Debt Offerings
Offerings of shares and notes can often unnerve investors, as the creation of new stock can raise dilution concerns and devalue current holdings.
However, the stock’s recovery might be linked to significant restructuring of IREN’s financial position. The company indicated it would use some proceeds from equity to buy back the convertible notes.
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The company will also invest $174.8 million in capped call transactions to mitigate dilution risks and enhance long-term confidence in shareholders’ prices.
Traders Might Have Capitalized on IREN Stock Dip
CNBC market commentator Jim Cramer stated in an X post on Wednesday that investors in any debt-taking company, including IREN, should consider selling.
“The Year of Magical Investing is back. Sell any company NOW that is doing a financing (like IREN) or has significant insider selling. Stay alert!” he remarked.
Nonetheless, X users quickly referenced the internet’s “inverse Cramer” effect, where stocks he criticizes tend to rise. Cramer has become a meme for his investment advice, often deemed to be incorrect.
The share price has decreased from its all-time high of over $62 recorded in October.
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