IREN drops on convertible debt offering
Shares of crypto miner and AI compute provider IREN dropped after the Australia-based, US-listed company said late Tuesday that it would sell $875 million in convertible senior debt.
The announcement came late in the trading day and caused a sell-off in the aftermarket session that continued into Wednesday trading.
The offering makes sense; the company can probably get some fairly cheap capital after its shares doubled over the last month.
But it exposes shareholders to some dilution risk if buyers of the hybrid securities do convert them into equity, which explains the market reaction.
The offering makes sense; the company can probably get some fairly cheap capital after its shares doubled over the last month.
But it exposes shareholders to some dilution risk if buyers of the hybrid securities do convert them into equity, which explains the market reaction.
