IREN Completes $3 Billion Financing to Accelerate AI Infrastructure Expansion

IREN is expanding beyond its bitcoin-mining roots into AI data centers and cloud computing, using its access to power and existing infrastructure to meet surging demand for computing capacity. Bernstein said the company’s planned $25 billion to $30 billion AI buildout puts financing requirements, execution risk and returns on invested capital under greater scrutiny, making the scale and pace of spending central concerns for shareholders.

Bernstein said the $25 billion-to-$30 billion expansion plan may have spooked investors. IREN, however, has secured cloud contracts representing $4 billion in annual recurring revenue for 2026. Recent agreements are generating more than $20 million in annual revenue for each megawatt of IT capacity, according to the figures cited, offering evidence that strong unit economics could help support the company’s aggressive infrastructure investment.

IREN is shifting from its roots in bitcoin mining toward AI cloud infrastructure, repurposing its access to large-scale power and data-center capacity. Its $9.7 billion agreement with Microsoft is a pivotal test of that strategy, as hyperscalers compete to secure the high-density computing resources needed for generative AI workloads and increasingly turn to specialist infrastructure providers for additional capacity.

The company has delivered the first of four planned AI cloud deployments to Microsoft, including a 50-megawatt facility certified by NVIDIA. IREN aims to expand its AI cloud capacity to 480 MW in 2026 and 1.2 GW in 2027. The rollout marks tangible progress in reducing its dependence on bitcoin mining and building a larger, contracted cloud-computing business.

IREN, best known as a bitcoin miner, has been expanding into AI cloud computing by deploying its data-center infrastructure and access to power for high-performance workloads. The shift is increasingly central to its investment case as technology companies race to secure computing capacity, giving IREN an opportunity to turn energy resources into longer-term contracts and more predictable revenue.

IREN raised its annual AI cloud revenue target to more than $4 billion after signing $2.8 billion of new contracts with AI developers including Microsoft and Nvidia. The announcement sent the company’s shares up about 16% in a single session. IREN also plans to sharply expand its AI cloud computing capacity in 2026 as it moves to meet strong customer demand.

IREN, originally focused on Bitcoin mining, has expanded into AI cloud infrastructure in recent years by leveraging its existing data centers, power resources and high-performance computing expertise. Bernstein said rising corporate demand for GPU computing could reduce IREN’s reliance on cryptocurrency market cycles and reshape its revenue mix.

Bernstein’s latest report said IREN has signed a long-term agreement with Microsoft worth a total of $3.7 billion and plans to expand GPU capacity to handle AI workloads. Related coverage did not disclose when the report was published, but analysts expect the agreement to help transform IREN from a Bitcoin miner into a sizable AI cloud services provider.

IREN, originally focused on Bitcoin mining and data centers, has shifted toward AI cloud-computing infrastructure in recent years. Its large purchase of Nvidia B300 GPUs reflects a bet on demand for generative AI computing capacity and an effort to expand its scale and competitiveness in the high-performance computing market.

IREN said it had ordered more than 50,000 Nvidia B300 GPUs, expanding its AI computing fleet by about 50% to a total of 150,000 GPUs, with deployment expected in the second half of 2026. The company also filed for an at-the-market share offering of up to $6 billion. Concerns about potential shareholder dilution sent its shares down about 5% in premarket trading.