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Iren, an AI data center operator, is also planning to raise $450 million through private sales of convertible senior notes, the company said in a press release.
The memo, scheduled for 2029, will be provided to buyers at qualified institutions, and could increase another $50 million if initial buyers take the option allocation.
Unsecured notes allow you to pay your profits every six months and convert them into Aylen’s common stock under certain conditions. The company has the option of redeeming a memo starting in mid-2028 if the stock exceeds the conversion price for a set period.
Aylen said he intends to use revenues in a pair of financial strategies aimed at offsetting potential stock dilution and market risk. These are capped call transactions and prepaid forward stock repurchases.
These hedges are designed to reduce the impact of future note conversions and may support the company’s share price by limiting the number of new shares issued.
“However, if the market price per normal share of Aylen measured under the conditions of the cap call transaction exceeds the upper limit price of the cap call transaction, there will still be dilution and/or no offsetting such potential cash payments,” the company writes.
Earlier this year, Aylen canceled the expansion of Bitcoin mining in favour of AI data centers. That stock is down 6.8% from the opening bell.
