IREN Shares Bounce Back After Major Funding Plan

IREN shares climbed on Wednesday after the Bitcoin mining firm revealed plans to bring in $3.6 billion through new stock sales and a large convertible note offer. The move comes as the company pushes to add more computing power for growing artificial intelligence demand.

Strong Market Rebound After Sharp IREN Price Drop

The stock reached $44.25 during trading, finishing at $43.96 for a gain of 6.9 percent. This rise followed a steep fall of more than 15 percent on Tuesday, which came soon after the company first signaled its intention to raise fresh capital.

In the new announcement, IREN said it will introduce a $2 billion convertible note offer along with a separate stock sale that aims to bring in about $1.63 billion. Several mining firms have turned to borrowing in recent months in an effort to shift toward the fast growing AI sector. 

The Miner Mag reported that public miners issued a combined $4.6 billion in debt and note offers in the final quarter of 2024, about $200 million at the start of 2025, and around $1.5 billion in the second quarter of 2025.

Many investors often grow uneasy when companies issue large amounts of new stock, since it can lower the value of existing holdings. That concern may have contributed to Tuesday’s drop. Even so, the rebound on Wednesday may be linked to steps IREN is taking to clean up its balance sheet. 

The firm stated that a portion of the money raised from new stock will be used to buy back some of the notes it is issuing. It will also put nearly $174.8 million into capped call deals that are meant to limit dilution and steady the long term share price.

Trader Reaction and Online Debate

Some traders may have also seen Tuesday’s slide as an opening to buy shares at a lower price. The discussion grew louder after CNBC commentator Jim Cramer posted on X that holders of any company taking on fresh debt, including IREN, should sell. 

His claim drew swift replies pointing out the popular online idea known as the inverse Cramer effect, in which stocks he criticizes sometimes rise soon afterward. Cramer has become a recurring topic for meme posts, with users claiming that his market calls often miss the mark.

Despite Wednesday’s improvement, IREN remains well below its record level from October, when the stock traded above $62.