IREN Secures $3.65B Financing with Microsoft as Collateral
- IREN secured a $3.65 billion facility on June 1, backed by Microsoft, with financing costs at a blended rate of 6.00%.
- Fitch rated IREN’s facility as ‘A’, leveraging Microsoft’s AAA credit rating to secure the investment-grade status.
- The deal covers approximately 96% of IREN’s $5.81 billion GPU cost, largely through Microsoft’s prepayment and loan arrangements.
- CoreWeave previously set a precedent with an $8.5 billion GPU-backed deal, prompting TeraWulf and Cipher to seek similar backing.
This financing move by IREN marks a shift from traditional equity dilution strategies in the mining sector, utilizing debt secured against Microsoft’s payments instead of issuing new shares.
By securing investment-grade financing, IREN has accessed cheaper capital without diluting shareholder value, setting a new standard for funding in the industry based on customer creditworthiness rather than asset portfolios. (Source)
