IREN Ltd's stock plummeted 13.59% during intraday trading on Monday, as investors reacted negatively to the company's announcement of a planned $2 billion convertible notes offering and a decline in quarterly revenue.

The data center operator announced its intention to offer $2 billion aggregate principal amount of convertible senior notes due 2033 in a private offering, with an option for initial purchasers to buy up to an additional $300 million. This capital raise plan raised concerns about potential dilution for existing shareholders, leading to significant selling pressure.

Additionally, IREN reported quarterly revenue of $144.8 million for the quarter ended March 31, down from $184.7 million in the prior quarter, citing weakness in Bitcoin economics and ongoing AI cloud buildout costs. The stock had recently rallied sharply following a landmark partnership with NVIDIA announced earlier in the week, prompting profit-taking among investors who had seen the stock gain 51% year-to-date and 285% last year.