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IREN Energy (IREN) stock fell 4.9% in extended trading on Tuesday after the company revealed its intention to offer $875 million worth of convertible senior notes.

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The offering comes after IREN stock closed at an all-time high of $61.68. IREN had about 272 million outstanding shares as of June 30. The company stated that it also expects to grant the initial purchasers of the six-year bonds an option to purchase up to an additional $125 million principal amount of notes.

The company intends to utilize the proceeds from the fundraising for general corporate purposes and to enter into capped call transactions, which are generally expected to reduce the potential dilution to IREN’s ordinary shares upon any conversion of the notes.

Retail sentiment on Stocktwits about IREN stock was still in the ‘extremely bullish’ territory compared with ‘bullish’ a day ago.

The Bitcoin miner is undergoing a strategic shift to become an artificial intelligence data center operator. Last month, the company announced the doubling of its AI Cloud GPU capacity to 23,000, targeting $500 million in annualized revenue by early 2026.

IREN stock jumped 6.8% on Tuesday after the company said it has signed additional multi-year cloud services contracts with leading AI companies for NVIDIA Blackwell GPU deployments. It noted that to date, it has secured contracts for slightly less than half of the 23,000 GPUs, representing approximately $225 million in AI Cloud annualized run-rate revenue, expected to be in operation by the end of 2025.

The company also stated that it is engaging with existing and prospective customers through site tours, technical diligence, and commercial negotiations for additional contracts beyond the 23,000 GPUs.

One Stocktwits user wrote that the company now has more cash to bolster its GPU holdings. “This could finish out the Canadian GPU expansion and bring the CSP [Cloud Service Provider] revenue to $1.3B ARR.  This pushes the share price over $100 even with dilution,” the trader noted.

“If you believe the growth story, stop worrying about the converts; you need capital to grow, otherwise you stall,” another user said.

IREN stock has jumped nearly sixfold this year.

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