IREN Limited closed a $3 billion convertible senior notes offering on May 15, securing capital for its pivot from Bitcoin mining to AI data center operations. The 1.00% convertible senior notes mature in 2033 and include the full exercise of a $400 million additional purchase option, according to TS2.
Shares fell to $54.46 in Friday morning trading, down $3.94 from the previous close, on dilution concerns. The notes convert at approximately $73.07 per share. IREN allocated $201.3 million of the proceeds to capped call transactions hedging dilution up to an initial cap price of $110.30 per share, according to TS2.
The NVIDIA Stack
The capital raise follows two NVIDIA deals announced earlier this month. On May 7, IREN signed a five-year, $3.4 billion contract to provide NVIDIA with managed GPU cloud services for its internal AI and research workloads, deployed at IREN’s data centers in Childress, Texas, according to CNBC.
Separately, NVIDIA and IREN announced a strategic partnership to deploy up to 5 gigawatts of NVIDIA DSX-branded infrastructure across IREN’s global data center pipeline. As part of that deal, IREN issued NVIDIA a five-year right to purchase up to 30 million shares at $70 per share, a potential $2.1 billion investment, according to NVIDIA Newsroom.
“AI factories are becoming foundational infrastructure for the global economy,” NVIDIA CEO Jensen Huang said in the partnership announcement.
From ASICs to GPUs
IREN’s most recent quarter shows the transition cost. Revenue dropped to $144.8 million from $184.7 million in the prior period, while net loss deepened to $247.8 million as the company retired Bitcoin mining rigs in preparation for GPU deployment, according to TS2. The bright spot: AI cloud services revenue surged from $3.58 million in Q1 2025 to $33.63 million in Q1 2026.
The company also holds a multi-year, $9.7 billion deal with Microsoft signed in November 2025 to deliver GPU cloud infrastructure at its Childress facility, according to CNBC.
Capital Concentration in AI Infrastructure
IREN’s raise is part of a broader pattern of former crypto miners pivoting to AI infrastructure, leveraging existing power contracts and data center sites that are increasingly difficult to replicate. Jefferies analysts have noted these firms have a “head start” thanks to hard-to-get power hookups, per TS2. The total capital committed across IREN’s NVIDIA, Microsoft, and Dell relationships now exceeds $12 billion, a measure of how much infrastructure spend is required to service the current wave of agentic AI demand.