IREN Secures $3.6B Loan to Finance $9.7B AI Cloud Contract Infrastructure
IREN reported Q2 revenue of $184.7 million versus $229.6 million expected, with a net loss of $155.4 million driven by $219.4 million in non-cash charges. Management secured a $3.6 billion delayed-draw term loan at sub-6% interest plus a $1.9 billion Microsoft prepayment to fund GPU purchases for AI infrastructure.
1. Q2 Financial Performance
IREN reported total revenue of $184.7 million for the second quarter, missing analyst estimates of $229.6 million. The company recorded a net loss of $155.4 million, largely due to $219.4 million in derivative revaluations and hardware impairment charges.
2. $3.6 Billion Credit Facility
Management finalized a $3.6 billion delayed-draw term loan at an interest rate below 6%, alongside a $1.9 billion prepayment from Microsoft. These funds cover approximately 95% of capital expenditures for GPU purchases tied to a $9.7 billion AI cloud infrastructure contract.
3. Infrastructure Expansion and AI Pivot
IREN has secured over 4.5 GW of power capacity and is developing a 1.6 GW data center campus in Oklahoma within the Southwest Power Pool. The Sweetwater 1 substation in Texas (1.4 GW) is on track for April 2026 energization, enabling faster GPU deployment.
4. Operational Headwinds and Accounting Impact
Lower Bitcoin prices and increased mining difficulty pressured the crypto mining segment, contributing to the revenue shortfall. While non-cash accounting items inflated the headline loss, the company holds $2.8 billion in cash as of January 31, 2026, supporting ongoing operations.