Fast-growing AI player taps markets for billions amid data-center frenzy

Group 1: Company Overview - Iren, an Australian company, has transitioned from a Bitcoin mining firm to an AI infrastructure provider, experiencing a stock price increase of 200% over the past year as it shifts its focus towards AI computing and cloud services [2][3] - The company has announced a significant capital raise of $3.6 billion through equity and convertible note offerings to support its AI ambitions and expansion [1][3] Group 2: Financial Details - Iren has priced a $2 billion private convertible notes offering, which will provide long-dated, low-cost capital while preventing immediate stock dilution [1] - The convertible notes consist of two series, each valued at $1 billion, with one series due in 2032 at a 0.25% interest rate and the other due in 2033 at a 1.00% interest rate [6] - Each $1 billion note carries a 25% conversion premium, with a conversion price of approximately $51.40 per ordinary share, while the stock traded at $43.68 on December 3 [5][7] Group 3: Strategic Partnerships and Infrastructure - Iren has signed a five-year $9.7 billion GPU cloud services contract with Microsoft to supply NVIDIA GB300 chips from its Texas campus, indicating a strong commitment to expanding its AI capabilities [4] - The company currently operates 810 MW of data centers across North America and holds 2.9 gigawatts of grid-connected power across more than 2000 acres, positioning itself to meet the growing demand for AI workloads [4] Group 4: Future Expectations - If investors fully exercise their options to purchase additional notes, Iren expects to raise approximately $2.27 billion, which will be utilized for debt repurchase and further investment in AI infrastructure [9]