Stock Market Today, May 11: Iren Falls After $2 Billion Convertible Notes Offering Pressures Shares

Iren (NASDAQ:IREN) operates renewable-powered data centers for Bitcoin (CRYPTO:BTC) mining and AI cloud services. Shares closed at $55.15, down 9.89%, after the company announced a $2 billion convertible notes offering. Last week, Iren reported a fiscal Q3 earnings miss, but added news of an AI infrastructure cloud services contract with Nvidia (NASDAQ:NVDA). Investors will be watching how new debt supports its Nvidia-backed AI infrastructure buildout.Trading volume reached 108.4 million shares, coming in about 187% above its three-month average of 37.8 million shares. Iren IPO'd in 2021 and has grown 126% since going public.The S&P 500 (SNPINDEX:^GSPC) inched up 0.19% to 7,413, while the Nasdaq Composite (NASDAQINDEX:^IXIC) added 0.10% to close at 26,274. Among data centers and cloud computing peers, CoreWeave (NASDAQ:CRWV) closed at $114.70, up 0.48%, and Riot Platforms (NASDAQ:RIOT) finished at $25.34, gaining 5.23% as investors weighed crypto exposure.After Iren shares had soared more than 50% in just the past month, the company announced a plan to raise fresh capital today. Iren will offer $2 billion in convertible senior notes due 2033. While details of the offering, including interest rate, initial conversion rate, and pricing weren’t yet announced, investors sold the stock on the prospect of further dilution to existing shareholders. Leverage risk also continues to grow as Iren invests to grow its cloud computing capacity. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool