IREN Repositions to AI Cloud with 150,000 GPUs, $3.7 B Revenue Outlook
IREN is shifting from Bitcoin mining to a hyperscale AI cloud operator with 150,000 contracted GPUs supporting $3.7 billion annualised revenue and a five-year Microsoft deal for half the capacity. Bernstein cut its price target to $100 while projecting AI cloud revenue rising from $16 million in 2025 to $1.4 billion in 2027.
1. Pivot to AI Cloud
IREN is transitioning from Bitcoin mining toward operating a hyperscale AI cloud, planning to sunset mining operations as AI demand accelerates. Bernstein analysts retained an outperform rating while cutting the price target to $100, citing the company’s successful pivot and strong growth prospects in cloud computing.
2. GPU Contracts and Financial Outlook
The company has contracted 150,000 GPUs, underpinning $3.7 billion in annualised revenue once fully deployed, with half of that capacity secured by a five-year agreement with Microsoft. Projections show AI cloud revenue surging from $16 million in 2025 to $1.4 billion in 2027, generating $2.1 billion in adjusted EBITDA that year.
3. Infrastructure Expansion
IREN’s 4.5 gigawatt power portfolio provides the physical backbone for its cloud ambitions, with British Columbia and Texas sites being retrofitted for GPU racks and additional capacity available in Sweetwater and Oklahoma. This infrastructure expansion positions the company to scale AI operations and drive long-term margin expansion.