IREN shares rebounded on Wednesday after the Bitcoin mining company announced plans to raise $3.6 billion via a mix of share sales and a convertible debt offering, aiming to deploy computers to meet the rising demand for artificial intelligence.
IREN (IREN) surged 7.6% to a high of $44.25 during Wednesday’s trading, closing at $43.96 with a 6.9% increase. This follows a more than 15% decline on Tuesday after announcing its capital raising plans.
On Wednesday, IREN disclosed it was initiating a new $2 billion convertible note offering while also conducting a share sale to generate an additional $1.63 billion.
Many miners are turning to debt to adapt and meet AI demands, with The Miner Mag estimating that the total debt and convertible-note offerings from 15 public miners reached $4.6 billion in Q4 2024, $200 million at the start of 2025, and $1.5 billion in Q2 2025.
Debt offerings may have alarmed shareholders
Stock and note offerings can intimidate investors as new stock generation raises concerns of dilution and lowers existing holdings’ value.
Nevertheless, the recovery in stock price might be linked to significant restructuring of IREN’s balance sheet. The company indicated it would use part of the equity proceeds to repurchase convertible notes.
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Additionally, it will allocate $174.8 million for capped call transactions to mitigate dilution risks and bolster shareholder confidence in the long-term stock price.
Traders might have capitalized on IREN’s dip
CNBC market analyst Jim Cramer stated in an X post on Wednesday that shareholders of any company incurring debt, like IREN, should sell.
“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 here!!!” he remarked.
However, users on X were quick to reference the internet’s “inverse Cramer” concept, where stocks he criticizes tend to rise. Cramer has become a meme for his investment advice, which many believe is often misguided.
The share price has dropped from its October all-time high of over $62.
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