Shares in IREN recovered on Wednesday after the Bitcoin miner said it would raise $3.6 billion through a combination of share sales and a convertible debt offering as it races to deploy computers to meet the demand for artificial intelligence.
IREN (IREN) jumped 7.6% to a peak of $44.25 during trading on Wednesday, and settled to $43.96 by the bell for a gain of 6.9%. IREN fell over 15% on Tuesday following its announcement that it was planning capital raising efforts.
IREN said on Wednesday that it was launching a new $2 billion convertible note offering and simultaneously conducting a share sale to raise an additional $1.63 billion.
A growing number of miners have been taking on debt to pivot and meet the demands of AI, with The Miner Mag estimating in October that the combined debt and convertible-note offerings from 15 public miners were $4.6 billion in Q4 2024, $200 million at the start of 2025, and $1.5 billion in Q2 2025.
Miner’s debt offerings might have spooked holders
Share and note offerings can often spook investors as the generation of new stock sparks dilution fears and the devaluing of existing holdings.
However, the stock recovery could be connected to some of the sweeping restructuring of IREN’s balance sheet. The company stated that it will utilize some of the equity proceeds to repurchase the convertible notes.
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It will also spend $174.8 million on capped call transactions to reduce dilution risks and instill confidence in the long-term price for shareholders.
Traders could have also bought the dip in IREN stock
CNBC markets commentator Jim Cramer said in an X post on Wednesday that shareholders of any company taking on debt, such as IREN, need to sell.
“Year of Magical Investing is back. Sell any company NOW that is doing a financing (a la IREN) or has big insider selling. Stay close here!!!” he said.
However, X users were quick to bring up the internet’s “inverse Cramer” effect concept, where any stock he criticizes experiences a boost. Cramer has become a meme for his investment advice, which many say usually turns out to be the wrong call.
The share price is down from its October all-time high of over $62.
