IREN Locks in Nvidia with $3.4B Contract and Equity Option as Bitcoin-to-Cloud Pivot Accelerates

Nvidia is not just writing a cheque for cloud capacity at IREN’s Texas data centres — it is also taking a direct stake in the company’s future. Under a five-year deal worth $3.4 billion for 60 megawatts at the Childress site, the chip giant has secured an option to buy up to 30 million IREN shares at $70 apiece. The arrangement ties the two firms strategically, giving Nvidia a financial incentive to see IREN’s AI infrastructure succeed.

The equity kicker is the latest sign of how far the former Bitcoin miner has travelled from its roots. IREN chief executive Daniel Roberts used an appearance at the Dell Technologies World conference in Las Vegas this week to hammer home the message: the company is now a dedicated AI cloud provider, not a cryptocurrency operator dabbling in compute. To fund that transformation, IREN has raised $3 billion through a convertible bond maturing in 2033 — a move that enables expansion but also adds leverage to the balance sheet.

The bond is part of a broader capital-intensive strategy. IREN recently completed Sweetwater 1, a 1.4-gigawatt data centre in Texas that went live at the beginning of May. It also snapped up cloud software specialist Mirantis for $625 million in shares, and acquired the creative agency Awaken to handle global branding. Awaken founder Chris Parker will serve as chief marketing officer, while the media-buying unit This Is Flow will continue as a standalone business.

Should investors sell immediately? Or is it worth buying IREN?

The financial results, however, tell a story of a company in transition. In the third quarter of its 2026 fiscal year, IREN posted revenue of $144.8 million, down from $184.7 million in the prior quarter, as the legacy mining business reeled from rising electricity costs — up 69% year-over-year. The new AI cloud segment, by contrast, saw quarterly revenue leap 94% to $33 million, with a gross margin of 86%. The overall bottom line was a three-digit million-dollar loss.

That mixed picture has weighed on the stock. Currently trading around €42, the shares have lost more than 12% in the past seven days and sit roughly 36% below their 52-week high. On a longer horizon, however, the turnaround has been spectacular: IREN’s equity has surged about 470% over the past twelve months. Analysts see further upside: BTIG maintains a target of $80 with a “Buy” rating, and the consensus price target stands at $69.90.

Management’s goal is to boost annualised recurring revenue to $3.7 billion by the end of 2026, up from the $3.1 billion already contracted. The near-term challenge will be deploying the new GPU capacity at Childress and Sweetwater 1 without delays. Any slip in construction or commissioning could jeopardise those ambitious targets — and test whether the Nvidia-backed pivot can deliver on its promise.

Ad

IREN Stock: New Analysis - 19 May

Fresh IREN information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated IREN analysis...

en | AU0000185993 | IREN | boerse | 69374169 |