The pivot from Bitcoin mining to AI solutions is proving to be a profitable one.
Australia-based Bitcoin miner IREN Limited (NASDAQ: IREN) has signed a multi-year GPU cloud services contract worth $9.7 billion with Microsoft.
Under the agreement, IREN will provide Microsoft with access to NVIDIA GB300 GPUs for artificial intelligence workloads over a five-year period. The deal includes a 20 percent prepayment from Microsoft and makes the tech company IREN’s largest customer to date.
The partnership comes in the midst of IREN’s incredible performance in 2025 with the company’s stock currently up over 500% YTD.
To deliver on the agreement, IREN has also entered a separate $5.8 billion purchase deal with Dell Technologies to acquire GPUs and related hardware. Both contracts are part of IREN’s broader strategy to expand its Texas data center operations beyond Bitcoin mining and into high-performance cloud computing
From bitcoin mining to AI: A turning point for IREN
The GPUs will be deployed in phases through 2026 at IREN’s 750MW campus in Childress, Texas. The new liquid-cooled data centers will support 200MW of critical IT load. IREN plans to finance the buildout using existing cash, Microsoft’s prepayment, operating revenues, and other funding sources.
“We’re proud to announce this milestone partnership with Microsoft, highlighting the strength and scalability of our vertically integrated AI Cloud platform,” said Daniel Roberts, IREN’s co-founder and co-CEO.
“This agreement validates IREN’s position as a trusted AI cloud provider and opens access to a new customer segment among global hyperscalers.”
Jonathan Tinter, Microsoft’s President of Business Development and Ventures, described IREN as a strategic partner. “Together with IREN, Microsoft is delivering advanced AI infrastructure for our customers. IREN’s expertise in building and operating a fully integrated AI cloud, combined with its secured power capacity, makes the company an ideal partner,” he said.
IREN’s Chief Commercial Officer, Kent Draper, called the collaboration “transformational,” adding that it “catapults IREN into the top echelon of the neoclouds.”
Key details of the agreement:
- Total value: $9.7 billion over five years, with a 20 percent prepayment
- GPU supplier: Dell Technologies, under a $5.8 billion contract
- Deployment site: Childress, Texas campus
- Power capacity: 200MW liquid-cooled data centers
- Completion timeline: Phased rollout through 2026
Following the announcement, IREN’s stock jumped as much as 30 percent in pre-market trading before settling near $74.51, according to TradingView. Shares are now up about 573% since January, extending one of the strongest rallies in the crypto mining sector this year.
As of the time of writing, IREN trades around $66.83, showing some pullback after the initial surge but still holding substantial year-to-date gains.
IREN stock price Source: TradingView
Meanwhile, Microsoft’s stock, which trades on the Nasdaq under the ticker MSFT, has slipped about 0.15 percent over the past 24 hours and is currently trading around $511.22, as per TradingView data.
Microsoft stock price Source: TradingView
Analysts at Bernstein project IREN’s AI business could generate $500 million annually by 2026, lifting its price target to $75, which was already reached this week. The firm sees more upside as GPU demand rises, with IREN’s low-cost power base positioning it to evolve from miner to AI cloud leader.
