IREN Limited (NASDAQ:IREN) stock is surging during Thursday's trading session. The move follows the official settlement of the company's upsized $2.6 billion convertible senior notes offering.
The Nasdaq is up 0.92% while the S&P 500 has gained 0.87%.
Massive Liquidity Boosts AI Ambitions
According to a United States Securities and Exchange Commission Form 8-K filed on Tuesday, the offering was scheduled to close on Thursday. This capital raise provides liquidity to fund its aggressive transition into an AI infrastructure giant. The company priced the 1% notes due 2033 to qualified institutional buyers.
The company estimates net proceeds of approximately $2.57 billion after expenses. Per the SEC filing, IREN intends to use the funds for general corporate purposes and working capital. This includes $174.5 million to fund capped call transactions.
Analysts Divided on Price Forecasts
On May 11, Macquarie maintained an outperform rating. The firm significantly raised its forecast to $90. Conversely, JPMorgan maintains an underweight rating. However, they raised their price forecast to $46 earlier this week.
Short Sellers Face Tight Exit
Recent data shows short interest in IREN decreased during the last reporting period. Total shorted shares fell from 59.14 million to 58.36 million. Currently, 16.87% of the company's float is held short. Traders note it would take 1.63 days for shorts to cover based on average volumes.
IREN Stock: Key Technical Levels To Watch
IREN is extended above its major moving averages, which is the clearest longer-term trend signal: it's trading 15.2% above the 20-day SMA of $50.89 and 34.9% above the 200-day SMA of $43.46.
The moving-average structure remains bullish, with the 20-day SMA above the 50-day SMA and a golden cross in May — 50-day SMA above the 200-day SMA.
- Key Resistance: $59 — a nearby round-number/pivot area where rebounds can stall
- Key Support: $48.50 — a prior demand zone that sits closer to the rising short-term trend — near the 20-day area
IREN Price Action: Iren shares were up 4.89% at $57.87 at the time of publication on Thursday, according to Benzinga Pro data.
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