IREN Shares Rise on $2.4 Billion GPU Financing Deal Led by Blue Owl
IREN (NASDAQ:IREN) shares climbed 4% in afternoon trading after the company secured a $2.4 billion senior secured financing package led by private credit manager Blue Owl Capital to fund its AI cloud business with GPU purchases. The deal, split evenly between a term loan and notes both priced at a 9% coupon rate, underscores IREN's strategic shift from Bitcoin mining toward high-performance computing infrastructure. The financing highlights the growing capital needs of companies building out AI infrastructure but also reflects higher borrowing costs compared to traditional investment-grade debt. Cipher Digital (NASDAQ:CIFR), another miner transitioning into HPC and data centers, saw a 2% rise in its stock price despite securing an $810 million bond at a lower 6% rate. The market is showing strong interest in AI infrastructure plays amid broader weakness in the S&P 500 and Nasdaq indices. Blue Owl's involvement signals that private credit firms are increasingly taking on risk in this emerging asset class.
