IREN is shifting its Bitcoin-mining infrastructure toward AI cloud services. At FY2026 year-end, contracts for its current capacity represented a $4 billion annualized revenue run rate; its FY2027 guidance calls for $25 billion–$30 billion in capital spending.
Announced Nov. 3, 2025, the five-year Microsoft deal calls for IREN to deliver large-scale GPU clusters at its Childress, Texas, data centers and includes a 20% prepayment. It is projected to contribute $1.94 billion in annualized revenue run rate at an 85% EBITDA margin once fully commissioned. IREN also has multiyear contracts with Cohere, Prometheus, Perplexity, Figure AI, Fal AI and Higgsfield AI.
IREN shares rose 414% over two years but are 40% below their 52-week high, as investors scrutinize spending and debt tied to the wider AI buildout. IREN says compute shortages pushed three-year contract pricing up roughly 125% and five-year rates up 70%; management estimates hardware investments will pay back in about two years at current prices. The article says the stock may suit aggressive investors who expect GPU prices to hold and IREN to turn its assets into profits.
