The former crypto miner's pivot to AI infrastructure is paying off as hyperscalers scramble for GPU capacity
IREN Limited, the company formerly known as Iris Energy, is watching demand for its GPU cloud services outstrip supply. Contracts are now pricing above $15 million per megawatt, with hyperscalers and enterprises lining up to secure capacity they can’t easily find elsewhere.
From mining rigs to AI gold #
The company has set a target of 150,000 GPUs by late 2026, a fleet that would include NVIDIA’s Blackwell B200 and B300 series chips alongside earlier A100 units and AMD MI350Xs. Part of that expansion includes plans for over 50,000 additional NVIDIA B300 GPUs.
IREN doubled its deployed capacity to 23,000 GPUs in September 2025. The jump from 23,000 to 150,000 in roughly a year would represent a more than six-fold increase.
The numbers behind the pivot #
IREN’s AI Cloud annual run-rate revenue is projected to exceed $500 million by the first quarter of 2026. By the end of 2026, the company’s ARR could surpass $3.7 billion, with approximately $2.3 billion already locked in under contract.
The crown jewel of those commitments is a multi-year deal with Microsoft covering more than 11,000 GPUs. That single contract is valued at around $3.4 billion over five years.
IREN’s stock price surged nearly 10% following the capacity expansion announcements.
What this means for investors #
Execution risk is now the primary concern: can IREN actually deploy 150,000 GPUs on schedule, maintain uptime standards that hyperscalers demand, and manage the capital expenditures required for that kind of expansion? NVIDIA’s ability to deliver chips on time is another variable outside IREN’s control, as supply chain disruptions, export restrictions, or production delays for the B300 series could push timelines and compress margins.
Investors watching this space should track three things closely: IREN’s GPU deployment milestones against its stated timeline, any new contract announcements that signal sustained pricing power, and the company’s capital structure as it funds what amounts to a multi-billion-dollar infrastructure buildout. The $2.3 billion in contracted revenue provides a cushion, but the gap between contracted and projected revenue still represents meaningful uncertainty.
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