IREN Raises AI Cloud Revenue Target Above $4 Billion, Shares Jump 16%

IREN, originally focused on Bitcoin mining and renewable-energy data centers, has increasingly redeployed its existing power and data-center assets for AI cloud computing. Its large-scale purchase of NVIDIA Blackwell systems from Dell Technologies is intended to support a previously announced five-year, $3.4 billion managed AI cloud services contract, underscoring an accelerating shift in its revenue mix.

On May 27, 2026, IREN announced a $1.6 billion procurement agreement with Dell Technologies. The air-cooled Blackwell systems will be deployed at its existing data center in Childress, Texas, and are expected to become operational in early 2027. IREN estimates that the contract could raise annualized revenue from $3.7 billion to $4.4 billion once it goes live. Its shares rose 4% in premarket trading after the announcement.

IREN was previously focused primarily on bitcoin mining but has pivoted in recent years to building GPU cloud infrastructure for AI training and inference, using its existing power, land and data-center assets. Expanding AI computing capacity requires substantial upfront capital. The scale of this financing underscores capital-market support for the miner’s transformation and will affect how quickly it can expand its data centers and computing clusters.

IREN Limited initially planned a $2 billion note offering on May 11, 2026, increased it to $2.6 billion on May 12 and completed a $3 billion private placement of convertible senior notes due 2033 on May 14. The notes carry a 1% coupon and include a $400 million option to purchase additional notes. Net proceeds were approximately $2.96 billion, of which $201.3 million was used for capped-call transactions, with the remainder earmarked for corporate purposes and working capital.

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.