Nvidia Locks in IREN with $3.4B Deal as One Big Investor Cashes Out

The Australian bitcoin miner-turned-AI infrastructure play is riding two opposing narratives. On one side, a transformative partnership with Nvidia has sent shares sharply higher. On the other, a prominent institutional shareholder is trimming its exposure, signaling caution even as the company accelerates its pivot into high-performance computing.

IREN shares gained nearly 9% on Thursday to trade at €49.40, though the stock remains 26% below its 52-week high of €66.51. The rally comes after a staggering 527% annual gain — a run that has left the relative strength index at 44, suggesting there is still room to run. Yet the backdrop is anything but calm: annualized volatility sits at 123%, and Harvest Portfolios Group has slashed its stake by 18% in the latest reporting period, selling roughly 28,000 shares and leaving itself with a position worth about $5 million.

The contrasting moves reflect the market’s struggle to price IREN’s dual identity. The company signed a five-year agreement with Nvidia on May 7 worth an estimated $3.4 billion, under which the chip giant will take roughly 60 megawatts of computing capacity at IREN’s Childress, Texas facility. Nvidia is also contributing an additional $2.1 billion in payments tied to actual GPU deliveries. The deal marks a definitive step away from pure bitcoin mining: IREN is even acquiring the Awaken brand to bolster its global profile as an AI cloud provider.

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

Financially, the transition is gaining traction. In the third fiscal quarter of 2026, IREN posted revenue of $144.8 million. AI cloud revenue doubled year-over-year, even as bitcoin mining income edged lower. The company held $2.6 billion in cash as of April 30 and has access to a $3.0 billion convertible bond, hedged with capped-call transactions to mitigate dilution. The capital is earmarked for aggressive expansion: secured power capacity is targeted to reach 5 gigawatts, with AI cloud capacity planned at 480 megawatts by the end of 2026 and 1,210 megawatts the following year.

Current AI cloud capacity is fully utilized, and construction is underway on the first phase at Childress, with handover to Microsoft scheduled for the third quarter. The Sweetwater 1 facility is also on track. Analysts see further upside: of 19 covering IREN, 13 rate the stock a buy, with a consensus price target of $71.77. Nvidia itself projects global AI infrastructure spending could reach $4 trillion annually by 2030, a tailwind that could keep IREN’s hybrid model in demand — if the company can execute on its buildout and secure the long-term energy contracts needed to power the next wave of computing clusters.

Ad

IREN Stock: New Analysis - 22 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 | NVIDIA | boerse | 69394821 |