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Cryptocurrency stocks IREN, NAKA face difficulties amid convertible bond transactions.
The stocks of IREN and Kindly MD fell after the two companies announced hundreds of millions of USD convertible bond deals amid a decreasing flow of cryptocurrency investment. IREN issued 875 million USD in senior convertible bonds, causing the stock to drop 4.9% after trading hours to 58.66 USD. Kindly MD (NAKA) signed a 250 million USD 5-year bond agreement with Antalpha, and the stock fell an additional 2.83% to 0.99 USD.
According to Galaxy Research, investment in digital assets in the last quarter fell by 59%, and the number of transactions decreased by 15%. IREN plans to use the raised capital for corporate purposes and to limit share dilution. Kindly MD will use the funds to purchase additional Bitcoin, refinance a $203 million loan secured by Bitcoin, and receive a temporary loan from Antalpha. CEO David Bailey stated that this is the “first step in the strategy to expand the Bitcoin ecosystem.”