IREN Stock Soars Following Successful $875 Million Convertible Debt Offering
Shares of Data Center Operator IREN Surge After Securing Capital Raise
IREN’s Capital Boost: A New Phase in Financial Growth
IREN, an Australia-based data center owner and operator, witnessed a 2.7% increase in its stock price to $61.71 in pre-market trading. This uptick comes after the company announced a significant capital raise early Thursday.
Details of the Convertible Bond Offering
The company revealed details about a private offering of $875 million in zero-percent convertible bonds due in July 2031. The initial conversion price is set at $85.63, reflecting a 42.5% premium over the stock’s previous closing price of $60.09.
Strategic Use of Proceeds
IREN plans to allocate approximately $50 million from the proceeds to finance capped calls. The initial cap price is established at $120.18, which is 100% higher than the stock’s last sale. These strategic financial maneuvers are aimed at enhancing IREN’s corporate purposes and working capital.
Performance and Analyst Ratings
Recently, IREN’s shares climbed nearly 7% to a record close of $61.68 after securing new cloud services contracts involving Nvidia GPUs. As of Thursday, IREN’s stock has seen a remarkable 129% rise over the past month and has increased more than sixfold year-to-date.
- 9 analysts rate the stock as a “strong buy” or “buy”.
- 2 analysts suggest a “hold”.
- 1 analyst advises a “sell”.
The median price target stands at $41, according to data from LSEG.
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