IREN's shares rebounded on Wednesday after the Bitcoin mining company announced plans to raise $3.6 billion through share sales and a convertible debt offering to meet the growing demand for artificial intelligence. The stock surged 7.6% to a high of $44.25 before closing at $43.96, marking a 6.9% increase. This followed a 15% drop on Tuesday due to the capital raising announcement. IREN is initiating a $2 billion convertible note offering while also conducting a share sale to gather an additional $1.63 billion. Many miners are resorting to debt to adapt to AI demands, with estimates suggesting $4.6 billion in combined offerings from 15 public miners in Q4 2024. While share and note offerings can alarm investors due to dilution fears, IREN's recovery may be linked to its balance sheet restructuring. The company plans to use part of the equity proceeds to repurchase convertible notes and invest $174.8 million in capped call transactions to mitigate dilution risks.
