IREN lands $3.65 billion A-rated financing for Microsoft AI buildout
·2 min read
Compiled by KHAO Editorial
— aggregated from 1 source + 9 references discovered via search.
See llms.txt for citation guidance.
★ Tier-1 Source
Bitcoin miner-turned-AI-infrastructure provider IREN secured $3.65 billion in financing backed by its cloud computing contract with Microsoft on Monday.
Key facts
The high ratings helped IREN secure a blended borrowing cost of 6%, and the financing itself consists of a $2.1 billion U.S. private placement and a $1.55 billion delayed-draw loan
IREN shares were down nearly 2% to $62.30 in the first trading hour on Monday after reaching a more than six-month high above $68 last week
That, along with customer prepayments from Microsoft, funds roughly 96% of the $5.81 billion in GPU capital tied to the contract, according to IREN
Bitcoin miner-turned-AI-infrastructure provider IREN secured $3.65 billion in financing backed by its cloud computing contract with Microsoft on Monday
Summary
According to a release, the financing facility received investment-grade ratings of A from Fitch and A(low) for DBRS, which the company claims is "the highest publicly rated investment-grade GPU financing announced and the first GPU financing in the U.S. private placement market. The high ratings helped IREN secure a blended borrowing cost of 6%, and the financing itself consists of a $2.1 billion U.S. private placement and a $1.55 billion delayed-draw loan. That, along with customer prepayments from Microsoft, funds roughly 96% of the $5.81 billion in GPU capital tied to the contract, according to IREN. "Securing investment-grade financing on these terms reflects both the quality of our customer contracts and the fact that we own the data center infrastructure these GPUs run in," co-founder and co-CEO Daniel Roberts said in a statement.