IREN’s $625 million AI bet creates a $476 million stock overhang

Bitcoin miner IREN registered nearly 12 million shares issued in its acquisition of Mirantis for potential resale, creating a block worth about $476 million that could add selling pressure to its stock.

The company agreed in May to acquire Mirantis in a transaction valued at approximately $625 million at signing, largely through a fixed number of 13.7 million IREN shares.

However, the deal closed Aug. 3 with IREN issuing 12.6 million shares alongside about $40 million in cash, restricted stock units and other consideration.

One day later, IREN filed a prospectus covering 11.9 million of those shares held by former Mirantis investors, directors, officers and employees. The block was worth about $476.3 million at IREN’s Aug. 3 closing price of $39.75. 

The registration allows these new holders to sell all or part of their stock through public or private transactions. IREN will receive no proceeds because the shares already belong to the former Mirantis holders.

The filing does not indicate that any holder has sold or intends to sell. However, it removes a restriction on nearly 95% of the shares issued at closing, creating a potential overhang if a meaningful portion reaches the market.

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