Microsoft entered into a multi-year $9.7 billion contract for AI cloud capacity with IREN, announced on November 3, 2025, which boosted IREN’s share price. The move validates an energy provider that pivoted from Bitcoin mining to specialized GPU services for AI. It matters for investors, infrastructure operators and compliance teams due to its combination of power consumption, capex and large-scale corporate contracts.
IREN has doubled its GPU fleet to 23,000 units and reports $674 million invested in NVIDIA and AMD accelerators, according to the company. The deal with Microsoft is seen as external validation of that operating capacity.
In Q2 FY25 IREN recorded Bitcoin mining revenue of $113.5 million and a profit of $18.9 million; the company reported $501 million in total revenue in FY2025 and $269.7 million of EBITDA, according to its financial report.
IREN has indicated an ARR target above $500 million for the first quarter of 2026, which will shape perceptions of the model’s sustainability. Analysts have reacted with mostly positive recommendations and price targets ranging between $16.86 and $30.38, based on the available summary.
AI in the cloud: context and impact
The contract accelerates the adoption of “neocloud” providers specialized in AI workloads, which offer high performance per GPU. Ongoing investment is required; IREN has issued $550 million in convertible notes and a $1 billion offering to finance growth.
Dependence on cheap power and large corporate contracts increases exposure to changes in electricity prices or AI demand. The agreement reconfigures the landscape between traditional hyperscalers and specialized GPU providers.
The next concrete milestone will be verification of the ARR in the first quarter of 2026 and the operational implementation of the Microsoft supply; those data will determine whether IREN’s transition from Bitcoin mining to providing AI capacity is financially sustainable and replicable.
