IREN Ltd (IREN) saw its shares plummet 5.40% in pre-market trading following the company's announcement of a proposed $2 billion convertible senior notes offering and a concurrent registered direct offering of ordinary shares.

The AI Cloud Service Provider revealed plans to offer $1 billion aggregate principal amount of convertible senior notes due 2032 and another $1 billion due 2033, alongside a registered direct offering of ordinary shares. The proceeds are intended to fund the repurchase of existing convertible notes and for general corporate purposes. Such offerings often lead to stock price declines due to potential shareholder dilution and increased debt burden, which likely contributed to the selloff.

Investors reacted negatively to the dual offering structure, which raised concerns about the company's financial strategy and the timing of the announcements amidst broader market volatility.