Iren shares jump 16% as $2.8 billion AI cloud deals lift revenue target

IREN shares jumped as much as 16% on Monday after the company announced $2.8 billion in new multi-year AI cloud services contracts and raised its year-end 2026 revenue target for the business. The Nasdaq-listed stock rose as investors welcomed fresh signs that the former bitcoin mining company is gaining traction in the AI infrastructure market.

IREN said the new contracts with leading AI developers take its total contracted base closer to its updated target and show that demand for GPU cloud capacity remains strong.

The company said about 85% of the revised annualised run-rate revenue target is now backed by signed contracts. Its customer list includes Microsoft, Nvidia, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI, Hume AI and an unnamed AI developer.


The contracts cover both bare metal infrastructure and managed cloud services. Several of the latest deals include customer prepayments covering about 45% of the related GPU capital expenditure, reducing IREN’s own funding requirement for those deployments.

Across its portfolio, customer agreements have a weighted average duration of about four years.

AI cloud pivot gains speed

IREN was earlier known largely as a bitcoin mining and data-centre infrastructure company. The AI boom has changed its market story. The company is now building large-scale GPU cloud capacity for hyperscalers, AI developers and frontier AI labs.

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That shift has made the stock part of the broader AI infrastructure trade. Investors are tracking companies that can provide power, data-centre capacity and GPU access as demand for artificial intelligence computing continues to rise.

The latest contracts add to earlier large deals. In November, IREN signed a $9.7 billion cloud services contract with Microsoft to provide access to NVIDIA GB300 GPUs over a five-year period. The agreement included a 20% customer prepayment, according to the company’s release and Associated Press reporting at the time.

In May, IREN also announced a five-year AI infrastructure cloud services contract with NVIDIA valued at about $3.4 billion. Under that agreement, IREN is providing NVIDIA with access to managed GPU cloud services for internal AI and research workloads.

The company has also entered into a broader strategic partnership with NVIDIA across its data-centre pipeline. As part of that partnership, IREN issued NVIDIA a five-year right to purchase up to 30 million ordinary shares at $70 each, which could result in an investment of up to $2.1 billion if conditions are met.

Capacity expansion becomes key

IREN said demand from hyperscalers, enterprises, AI developers and frontier AI laboratories continues to exceed its existing and planned capacity. The company is working with customers across its 2026 and 2027 expansion programme.

Co-founder and co-CEO Daniel Roberts said IREN has scaled from about 3 MW of internally built AI cloud capacity to 480 MW scheduled for delivery this year. The company is targeting 1.2 GW in 2027.

That capacity expansion is central to the investment case. In AI cloud, signed contracts are only one part of the story. Investors also watch whether companies can procure GPUs, secure power, build data centres, deploy clusters and start generating revenue on time.

The company had earlier said its 2026 expansion to 480 MW was on track and that its operational capacity was fully contracted. It has also disclosed plans to build capacity at Childress, Sweetwater and other sites as part of a wider 5 GW secured power pipeline.

Cash position supports growth plan

IREN reported about $7.6 billion in cash and cash equivalents as of June 2026. That gives the company financial flexibility as it funds GPUs, data-centre buildout and supporting infrastructure.

The customer prepayment structure is also important. AI cloud providers need to spend large sums upfront before revenue fully ramps up. If customers fund part of the GPU capex through prepayments, it lowers near-term pressure on the company’s balance sheet.

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