IREN Limited has taken a decisive step in its transformation from a bitcoin mining operation into a provider of artificial intelligence cloud infrastructure, securing a landmark $3.4 billion, five-year cloud-services agreement with Nvidia. The deal positions IREN as a key partner in Nvidia’s AI ecosystem, with the chipmaker also obtaining an option to acquire up to 30 million IREN shares at $70 per share over the next five years. Should the option be fully exercised, the transaction could be worth up to $2.1 billion, pending regulatory approvals and other conditions.
The partnership comes at a time when the AI boom has created intense competition for both power and data-center capacity. Nvidia’s agreement effectively makes IREN a flagship customer for its AI infrastructure, while also providing the miner-turned-cloud-provider with a powerful endorsement. The collaboration will focus on deploying Nvidia’s DSX AI factory architecture at IREN’s 2-gigawatt Sweetwater campus in Texas, a facility designed to showcase large-scale AI computing systems. Nvidia CEO Jensen Huang has described such AI factories as “foundational infrastructure” for the future.
IREN’s pivot has not been without growing pains. The company reported a steep decline in revenue for its most recent quarter, with figures dropping to $144.8 million from $184.7 million in the prior quarter. Net loss widened to $247.8 million, a result IREN attributes to the ongoing shift away from bitcoin mining and toward GPU-based AI cloud services. The company’s legacy mining equipment also contributed to a $140.4 million impairment charge.
In addition to the Nvidia deal, IREN has been aggressively expanding its infrastructure. On May 5, the company announced an all-share acquisition of Mirantis, a cloud infrastructure and enterprise support firm, valued at approximately $625 million. Two days later, IREN moved to acquire Spain’s Nostrum Group, a data-center developer, adding roughly 490 megawatts of grid-connected power in Spain and bringing its total portfolio to 5 gigawatts. These acquisitions are still subject to closing conditions and regulatory clearances.
The Nvidia agreement follows a massive $9.7 billion, five-year deal with Microsoft in November, under which IREN will supply Nvidia GB300 chips from its Childress, Texas facility. To support that contract, IREN committed to purchasing approximately $5.8 billion in GPUs and related equipment from Dell Technologies. The new Nvidia cloud deal will initially deploy air-cooled Blackwell systems using about 60 megawatts of IREN’s existing capacity in Childress, with fully managed cloud services—not just bare metal—as a key offering.
IREN is not alone in racing to repurpose bitcoin mining infrastructure for AI. Competitors such as Hut 8 have announced similar moves, including a 15-year, $9.8 billion AI data-center lease deal in Texas, while TeraWulf and other former miners are also pitching AI-focused strategies to investors. The sector is seeing a flood of capital as companies vie for land, power, and GPU supply.
Analysts have responded positively to the Nvidia announcement. Cantor Fitzgerald raised its price target on IREN to $77 from $61, maintaining an Overweight rating, citing the Nvidia tie-up and the expanded capacity in Spain. H.C. Wainwright increased its target to $85, while Bernstein SocGen Group held its Outperform rating with a $100 target. IREN’s stock closed at $61.20 on Friday, up 7.7%, giving the company a market capitalization of approximately $20.4 billion.
Despite the optimism, execution risks remain significant. IREN plans to fund near-term capital needs through existing cash, operating cash flow, GPU financing, and other sources. The company has yet to close the Mirantis and Nostrum acquisitions, and regulatory hurdles could delay or derail those deals. The narrative around IREN has clearly shifted from bitcoin mining to AI cloud services, but investors will be watching closely to see whether the company can deliver on its ambitious plans without cost overruns or operational setbacks.
