The five-year agreement gives Microsoft access to advanced NVIDIA GB300 processors at IREN’s Texas facility. Microsoft will make a 20% upfront payment on the contract, which will help fund the infrastructure buildout. This deal validates IREN’s bold pivot from Bitcoin mining to AI cloud services over the past year.

From Bitcoin Mining to AI Powerhouse

IREN’s journey represents a dramatic transformation in the tech industry. The company started as Iris Energy in 2018, building renewable-powered Bitcoin mining operations across North America. When Bitcoin mining profits collapsed after the April 2024 halving event, the stock dropped to just $5.13 per share.

In November 2024, the company rebranded to IREN Limited to reflect its new focus on AI infrastructure. Management saw an opportunity to repurpose their massive power capacity and data centers for the booming artificial intelligence market. The strategy has paid off spectacularly—IREN’s stock has gained over 496% year-to-date, with shares trading around $74 before the Microsoft announcement.

Source: @IREN_Ltd

The company operates 2,910 megawatts of grid-connected capacity powered entirely by renewable energy. This gives IREN a critical advantage as AI companies desperately search for power to run their data centers. According to Microsoft CFO Amy Hood, the company expects AI capacity shortages to continue through at least mid-2026.

Details of the Microsoft Contract

Under the agreement announced through Globe Newswire, IREN will deploy NVIDIA’s latest GB300 GPUs at its 750-megawatt campus in Childress, Texas. The hardware will be installed in four new liquid-cooled data centers called Horizon 1 through 4, supporting 200 megawatts of computing power.

The GB300 represents cutting-edge technology. These “Blackwell Ultra” processors deliver 1.5 times more AI performance than the previous generation. Each GPU contains 288 gigabytes of memory and over 20,000 computing cores. The liquid cooling systems are necessary because these chips consume enormous amounts of power—up to 1,400 watts per GPU.

IREN will purchase the GPUs and supporting equipment from Dell Technologies for approximately $5.8 billion. Dell’s stock rose 5% on the news. The deployment will happen in phases throughout 2026, with Microsoft’s prepayment helping fund the initial buildout.

Daniel Roberts, IREN’s co-founder and co-CEO, said the partnership “validates IREN’s position as a trusted provider of AI Cloud services” and “opens access to a new customer segment among global hyperscalers.” Jonathan Tinter, Microsoft’s President of Business Development and Ventures, praised IREN’s expertise in building integrated AI cloud infrastructure combined with their secured power capacity.

The Bigger Picture: Miners Pivot to AI

IREN isn’t alone in this transformation. Several Bitcoin mining companies are rushing to capitalize on AI’s massive appetite for computing power. TeraWulf signed a $3.7 billion deal with Fluidstack, backed by Google’s parent company Alphabet. Other miners like MARA Holdings, Riot Platforms, and HIVE Digital have also begun shifting toward AI infrastructure.

These companies have a natural advantage: they already own power-hungry data centers and have experience managing massive electrical loads. Bitcoin miners collectively control access to more than 14 gigawatts of power, according to Bernstein analysts. This positions them as valuable partners for tech giants facing power shortages.

Microsoft is pursuing a hybrid strategy, building some of its own data centers while leasing capacity from specialized providers like IREN. In September 2025, Microsoft signed a deal worth up to $19.4 billion with another provider, Nebius Group, showing the scale of investment needed to meet AI demand.

Wall Street Weighs In

Analyst reactions to IREN’s deal have been mixed but mostly positive. Cantor Fitzgerald more than doubled its price target to $100, comparing IREN’s transformation to CoreWeave, a successful AI cloud provider valued at $48 billion. B. Riley raised its target to $74, and Bernstein predicted the stock could reach $75.

However, not everyone is convinced. JPMorgan downgraded IREN to “Underweight” with a $24 price target, arguing the stock price already assumes perfect execution of a massive infrastructure buildout. The consensus among 10 analysts shows an average price target of $60.38, with recommendations ranging from $24 to $100.

IREN now has a market capitalization exceeding $16.5 billion, up from roughly $1 billion earlier this year. The company expects to generate over $500 million in annual revenue from AI cloud services by the first quarter of 2026. For comparison, its total revenue for fiscal 2025 was $501 million from both Bitcoin mining and AI services combined.

Execution Challenges Ahead

While the Microsoft deal is impressive, IREN faces significant hurdles. The company must successfully deploy thousands of advanced GPUs on a tight timeline. If IREN fails to meet delivery deadlines, Microsoft can terminate the contract.

The capital requirements are enormous. Even with Microsoft’s 20% prepayment and $1.0 billion in convertible notes raised in October, IREN will need additional financing. The company plans to use existing cash, customer prepayments, operating cash flow, and new financing to fund the $5.8 billion Dell purchase plus data center construction costs.

Supply chain risks also loom large. NVIDIA’s most advanced chips are in extremely high demand, and any delays in GPU delivery could push back the entire project timeline. The liquid-cooled data centers must be built to exacting specifications to handle the heat generated by these powerful processors.

IREN will report its quarterly earnings on November 6, 2025, giving investors their first detailed update following the Microsoft announcement. Last quarter, the company beat earnings expectations by 230%, posting $0.66 per share versus the expected $0.20.

The Road Ahead for IREN

IREN’s deal with Microsoft represents a watershed moment for both the company and the broader trend of crypto miners pivoting to AI infrastructure. The company has successfully transformed from a struggling Bitcoin miner into a major AI infrastructure provider in less than 18 months.

With 2.9 gigawatts of power capacity secured and a marquee customer in Microsoft, IREN has the foundation for long-term growth. The question now is whether management can deliver on these ambitious plans and establish IREN as a lasting player in the AI infrastructure market rather than a one-hit wonder riding the AI wave.