IREN Ltd (NASDAQ:IREN) shares are moving lower on Wednesday following a proposed offering of convertible senior notes.
What Happened: Iren announced plans to offer $875 million of convertible senior notes due 2031 in a private offering to institutional investors. The company said it expects to grant the initial purchasers a 13-day option to purchase up to an additional $125 million of the notes.
Iren intends to use the proceeds from the offering for general corporate purposes and working capital. The company had approximately $564.5 million in cash and cash equivalents as of June 30.
IREN Analysis: Key support is at $57.50, which aligns with recent lows, while resistance sits at $62, a level that has been tested recently. This recent trading range signals a continuation of the current trend, so traders should watch for a move below support or a reversal at this level.
Benzinga Edge rankings show a strong momentum score of 99.65 for Iren, as well as a strong growth score of 99.76.
The RSI is calculated at 38.75, indicating the stock is approaching oversold conditions, which could signal a potential reversal if momentum shifts.
The MACD is currently bearish, with the MACD line below the signal line, reflecting downward momentum. The stock structure shows lower highs and lower lows, confirming a downtrend in the short term.
IREN Price Action: IREN shares were down 3.78% at $59.35 at the time of publication on Wednesday, according to Benzinga Pro. The stock is sitting 2.7% below its 52-week high and is a hefty 99.5% above its 50-day moving average.
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