NVIDIA-linked stock sinks after $3 billion capital raise
IREN Limited (Nasdaq: IREN), the Bitcoin (BTC) mining and artificial intelligence (AI) infrastructure company, earlier this month signed a deal with NVIDIA (Nasdaq: NVDA).
The company signed a 5-year AI cloud contract with NVIDIA for $3.4 billion. In addition, it also entered into a 5 GW strategic partnership with NVIDIA.
Related: Popular Bitcoin miner sells entire treasury
IREN made another major announcement on May 14, closing its offering of $3 billion aggregate principal amount of 1.00% convertible senior notes due 2033.
Key details of the transaction include:
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$2.6 billion offering, plus fully exercised $400 million greenshoe
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Net proceeds of approximately $2.96 billion
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1.00% coupon with 32.5% conversion premium
The company said it intends to use the net proceeds to fund the cost of the capped call transactions ($201.3 million) and general corporate purposes and working capital.
However, investors didn’t react positively to the latest news, and the IREN stock sank 8% to trade at $53.54 at the time of writing.
More News:
IREN pivots from Bitcoin mining to AI
Founded in 2018, the company started as a Bitcoin miner. This business was the company’s sole revenue stream, but declining mining margins forced it to pivot to AI operations.
IREN’s Bitcoin mining revenue stood at $111.16 million in Q1 2026, compared to $141.24 million in Q1 2025.
However, its AI cloud services revenue rose from $3.58 million in Q1 2025 to $33.63 million in Q1 2025.
The company, like most Bitcoin miners, has transitioned from mining operations to AI operations. AI is the hottest technology right now, and data infrastructure companies have found it a convenient pivot because of their ready infrastructure.
Related: Leading miners sell Bitcoin as market plunges
This story was originally published by TheStreet on May 15, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.