IREN plans to refinance its Horizons data center portfolio to eliminate the need for new equity issues beyond its at the market capacity in 2027. The company can recycle more than $2 billion from the $3 billion investment as the assets stabilize and produce income, reducing the remaining funding gap to between $3.1 billion and $3.4 billion. This strategy allows IREN to potentially recover capital equivalent to 79 million shares, or 20% of its current share count.
The move addresses investor concerns over a $25 billion to $30 billion capital expenditure target for fiscal year 2027. IREN leverages credit from a Microsoft contract to support data center underwriting while keeping GPU debt separate at IREN Cloud. This vertical integration enables the company to fund initial builds with equity and construction financing before refinancing at lower rates once the sites are cash flowing.
Key sources
- SOURCE@matthew_sigel“Refinancing most of that could recycle capital equivalent to ~79M shares at $38, or ~20% of today's share count”x.com
- SUPPORT@matthew_sigel“the remaining ~$3.1–3.4B is within the existing ATM capacity”x.com
- SUPPORT@matthew_sigel“No need for additional equity beyond the ATM to meet 2027 needs”x.com
- SUPPORT@matthew_sigel“fund the speculative DC build from equity and construction financing, and then once it's cash flowing you refinance the asset at a much lower interest rate”x.com
- SOURCE@iren_ltd“Horizon 1 delivered to Microsoft; Horizon 2-4 targeting delivery in Q4 2026”x.com
- SUPPORT@wallstengine“Blue Owl / PIMCO led: $2.4B at 9.0% fixed”x.com
- SUPPORT@wallstengine“customer prepayments cover 45-55% of GPU capex”x.com
- SUPPORT@trendspider“as the business shifts to support the data center buildout”x.com