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IREN shares climbed about 16% on Monday after the Bitcoin miner-turned-AI infrastructure company announced $2.8 billion in new multi-year AI cloud contracts and raised its year-end AI Cloud revenue target.
The company increased its projected annualized run-rate revenue from $3.7 billion to more than $4 billion by the end of 2026. About 85% of the revised target is now under contract.
New $2.8B Contracts Add AI Cloud Customers
IREN said the latest agreements were signed with AI developers across bare-metal infrastructure and managed cloud services. It did not disclose the value, duration, or customer attached to each contract.
Its customer base now includes Microsoft, Nvidia, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI and Hume AI. Contracts across IREN’s portfolio have a weighted average term of about four years.
Mining Capacity Shifts Toward GPU Infrastructure
The new agreements deepen IREN’s shift from Bitcoin mining into AI infrastructure. The company has been removing mining hardware from selected data centers and redirecting power capacity toward graphics processing units used for AI training and inference.
That transition has turned IREN’s power and data center footprint into the base for its AI cloud expansion.
Prepayments Cover 45% of GPU Capex
IREN said prepayments attached to contracts signed since June 1 will cover about 45% of the estimated GPU capital expenditure required for those deployments. The structure reduces the amount IREN must fund before services begin.
The company reported about $7.6 billion in preliminary cash and cash equivalents as of June 30, including $1.7 billion restricted for GPU financing linked to its Microsoft contract. Before the latest agreements, IREN had $3.1 billion of ARR under contract against a $3.7 billion target.
$4B Target Depends on 480MW Rollout
IREN previously secured a five-year, $9.7 billion contract with Microsoft and a five-year, $3.4 billion contract with Nvidia. The company plans to deliver 480 megawatts of AI cloud capacity during 2026, up from about 3 megawatts of self-built capacity a year earlier. It is targeting 1.2 gigawatts in 2027.
The $4 billion figure is an operating target rather than revenue recognized under U.S. accounting rules. It assumes planned GPUs are delivered, commissioned, tested and accepted by customers on schedule.
The next milestone is delivering the 480-megawatt rollout by December 31. Delays in data center delivery or GPU acceptance could reduce the amount of capacity generating revenue by year-end.
