Iris Energy Ltd (NASDAQ:IREN), a leading Bitcoin mining data center operator, saw its stock soar 5.1% in intraday trading on Wednesday following the company's announcement of an upsized $400 million private placement offering of 3.25% convertible senior notes due 2030.

The offering, which was increased from an initial target of $300 million, aims to provide Iris Energy with additional financial resources to fund its growth plans and corporate initiatives. The net proceeds from the offering, estimated at $386.5 million, will be used to fund capped call and prepaid forward share purchase transactions, with the remaining funds allocated for general corporate purposes.

The convertible notes offer an initial conversion price of $16.81 per share, representing a 30% premium over Iris Energy's closing share price on December 3. Additionally, the company has implemented capped call transactions to mitigate potential dilution from the conversion, with a cap price of $25.86, representing a 100% premium.