IREN jumps 16% after raising AI cloud revenue target above $4BThe Bitcoin miner raised its year-end AI cloud revenue target to more than $4 billion after signing $2.8 billion in new contracts with AI developers.
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Bitcoin miner IREN experienced a 15.7% rise in its shares after the company increased its year-end AI cloud annualized revenue target to over $4 billion. This adjustment followed the signing of $2.8 billion in new multi-year cloud services contracts with AI developers. About 85% of this revised annualized revenue target is secured under contract with clients such as Microsoft, Nvidia, Perplexity, and Figure AI.
IREN’s co-CEO Daniel Roberts revealed plans to significantly expand the company's AI cloud capacity, with a target of delivering 480 megawatts by 2026, a substantial increase from roughly 3 MW in the previous year. The goal for 2027 is even more ambitious at 1.2 gigawatts. The company noted that demand from hyperscalers, enterprises, and AI developers is outpacing their current and planned capacity.
Additionally, a portion of recent contracts includes prepayments covering approximately 45% of the associated GPU capital expenditures, which helps reduce the capital needed for these infrastructure deployments. CoinShares Bitcoin Mining ETF, which includes IREN as its fourth-largest holding at 10.05% of assets, also saw a 9.61% increase, reflecting broader share gains among miners.
This development highlights a growing trend of Bitcoin mining companies repurposing their infrastructure to serve AI and high-performance computing needs. Bernstein previously projected that IREN’s AI cloud division would become its primary revenue source, aligning with this shift in focus. The source emphasizes the significance of IREN’s strategic pivot as it positions itself within the expanding AI cloud services market.