IREN Posts Record $384.6M Profit as Bitcoin Miner Expands Into AI Cloud

Canaccord Genuity calls IREN’s $9.7B Microsoft GPU cloud contract transformative, raising its stock target to $70 amid accelerating AI infrastructure expansion.

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Summary

Canaccord Genuity described IREN’s five-year, $9.7 billion GPU cloud contract with Microsoft as a pivotal step shifting the bitcoin miner into AI infrastructure. The broker raised its price target to $70 from $42, citing a 20% prepayment from Microsoft, a projected 32% levered IRR, and the deal’s role in funding half of the $3 billion Horizon buildout in Texas. IREN will supply Nvidia GB300 GPUs from its Horizon data centers, while its planned 2GW Sweetwater 1 site, expected online in 2026, was valued at $32 per share. IREN’s latest quarter saw $240.3 million revenue, up 355% year-on-year, with Canaccord highlighting scale, low-cost power, and integration as advantages bridging crypto and AI.

Terms & Concepts
  • AI Cloud: Cloud computing infrastructure optimized to run artificial intelligence workloads, often powered by high-performance GPUs.
  • GPU: Graphics processing unit; a processor designed for rapid mathematical calculations, making it suitable for AI and high-performance computing tasks.
  • Levered IRR: Levered Internal Rate of Return; a measure of the profitability of an investment incorporating debt financing.