Iren to Raise $2 Billion Through Convertible Bonds for AI Data Center Expansion December 2, 2025 In a significant move to fund its aggressive expansion into artificial intelligence infrastructure, Iren, the company that pivoted from cryptocurrency mining to AI cloud services, is seeking to raise $2 billion through two tranches of convertible bonds. This financing effort underscores the immense capital requirements and intense competition within the AI data center sector, as companies race to build the computing capacity needed to power next-generation AI models and services. The company plans to issue $1 billion in bonds due in 2032 and another $1 billion due in 2033. According to Bloomberg, the 6.5-year tranche is being marketed with a coupon of 0-0.25 percent, while the 7.5-year issue carries a 0.5-1 percent coupon. The bonds come with a conversion premium of 25-30 percent. Alongside this debt offering, Iren is conducting a private share sale and intends to repurchase some of its existing convertible bonds. The financial operations are being led by a consortium of major investment banks, including Citigroup, Goldman Sachs, and JPMorgan Chase & Co. This capital raise follows a landmark $9.7 billion, five-year cloud capacity agreement Iren secured with Microsoft earlier this month, which included a 20 percent prepayment from the hyperscaler. As part of that deal, Iren committed to purchasing $5.8 billion in GPUs and ancillary equipment from Dell. The company currently operates 810 megawatts of data center capacity, with a substantial pipeline of 2.1 gigawatts under construction and an additional 1 gigawatt in development. The transaction highlights a broader trend of specialized AI infrastructure firms turning to innovative financing instruments to support multi-billion-dollar buildouts. Convertible bonds offer a lower-cost financing option compared to traditional debt, appealing to investors seeking exposure to the high-growth AI sector with potential equity upside. For Iren, the successful raise would provide crucial funding to fulfill its contractual obligations to Microsoft and solidify its position in the rapidly consolidating market for high-performance computing. The scale of this financing round reflects investor confidence in the long-term demand for AI-ready data center capacity, even as it tests the market's appetite for large-scale capital deployments in the sector. Source: datacenterdynamics
Iren to Raise $2 Billion Through Convertible Bonds for AI Data Center Expansion
