IREN Stock Dives After $6B Offering as Retail Bulls Remain Unfazed
IREN Ltd., an Australian bitcoin miner and contract data center operator, announced plans to purchase 50,000 advanced gaming processing units (GPUs) from Nvidia Corp. This acquisition is expected to bring IREN's capacity to 150,000 units and annualized revenue from its AI Cloud segment to over $3.7 billion this year.
The company also revealed plans to raise up to $6 billion through an at-the-market stock offering to fund its capacity expansion. However, the news of dilution weighed on IREN's stock, causing it to drop about 5% in Wednesday's after-market session.
Despite this decline, retail investors on Stocktwits remained bullish on IREN's prospects. They argued that the company's moves would spark explosive growth and dismissed concerns about higher spending and equity dilution.