IREN (IREN) Tumbles 15% on Billion-Dollar Fundraising from New Shares, Convertible Notes

Group 1 - IREN Ltd. (NASDAQ:IREN) experienced a significant decline of 15.20% on Tuesday, closing at $41.12, primarily due to investor concerns over its plans to raise over $2.3 billion through the issuance of convertible senior notes and new shares [1][3]. - The company announced it would issue two series of convertible senior notes, each worth $1 billion, with maturities in 2032 and 2033 [2]. - Noteholders have the option to purchase additional notes up to $150 million for each series, totaling an additional $300 million [3]. Group 2 - The convertible notes are designed to be converted into shares, which may lead to potential dilution of existing shareholders' equity [4]. - The net proceeds from this fundraising initiative will be utilized to repurchase a portion of existing convertible notes for cash and for other general corporate purposes [4]. - IREN Ltd. is also planning to issue new shares to finance the buyback of old debt maturing in 2029 and 2030 [4].