Shares of Bitcoin miner IREN and healthcare-crypto hybrid Kindly MD (NAKA) ended Tuesday lower after announcing multimillion-dollar convertible note deals, highlighting caution amid a broader slowdown in crypto venture activity.
IREN (IREN) initially gained 6.81% during the trading session but fell 4.9% in after-hours trading to $58.66 following the company’s reveal of an $875 million convertible senior note offering.
Meanwhile, Kindly MD, which merged with David Bailey’s Bitcoin firm Nakamoto, disclosed a $250 million five-year convertible note agreement with fintech firm Antalpha, a move that appeared to unsettle investors. NAKA shares slipped 0.97% during the day and dropped another 2.83% after hours to $0.99.
Institutional interest in digital assets remains strong, but Galaxy Research’s latest venture capital report highlights a slowdown, with funding dropping 59% and deal counts falling 15% compared to the previous quarter.
IREN raising capital for corporate needs
IREN plans to use part of the proceeds from its convertible note offering for general corporate purposes and working capital. The company also aims to cover the cost of capped call transactions, which help limit excessive share dilution when debt is converted into stock by setting a price cap.
An additional $125 million of notes is available for initial purchasers, all of which can be converted into IREN shares. The company expects these capped call transactions to reduce potential dilution for existing shareholders, a common concern with convertible note deals that can affect the value and voting power of current stock.
Nakamoto aims to expand Bitcoin holdings
Kindly MD and Antalpha have signed a non-binding letter of intent for long-term financing, designed to minimize dilution risk for shareholders compared to standard convertible debt. The proceeds are intended to expand the company’s Bitcoin holdings in the Kindly MD Bitcoin Treasury, alongside general corporate uses.
The funds raised through the financing will also be used to repay an existing $203 million Bitcoin-secured loan from Two Prime Lending Limited.
In the meantime, Antalpha will provide an interim Bitcoin-backed loan to Kindly MD until the convertible debt facility is finalized.
David Bailey described the partnership as a demonstration of “the power of Bitcoin companies supporting Bitcoin companies,” noting that it addresses “current financing needs while also laying the groundwork for future structures designed specifically for Bitcoin treasury companies.”
“This is the first step in what we expect will be a long series of initiatives to benefit our portfolio, our shareholders, and the Bitcoin ecosystem at large.”
