Bitcoin News Today: From Bitcoin Mines to AI Cloud: IREN's $9.7B High-Stakes Pivot

Bitcoin miner IREN Limited has completed one of the most significant transactions in the AI infrastructure sector, securing a $9.7 billion, five-year contract with Microsoft to supply AI computing power. The deal, announced November 3, 2025, has propelled IREN's stock to a near-25% surge in premarket trading, capping a dramatic transformation from a struggling cryptocurrency miner to a key player in the AI cloud services market, according to a a Brave New Coin report.

The agreement grants Microsoft access to NVIDIA's cutting-edge GB300 GPUs at IREN's Texas facilities, with the tech giant committing a 20% upfront payment to fund infrastructure development. This partnership validates IREN's strategic pivot, which began in late 2024 when the company rebranded from Iris Energy to reflect its focus on AI. After Bitcoin mining profits collapsed following the 2024 halving event—driving its stock to a low of $5.13 per share—IREN repurposed its renewable-energy-powered data centers to meet the surging demand for AI processing, the report said.

IREN's Texas campus in Childress, spanning 750 megawatts of capacity, will deploy four liquid-cooled data centers to house the GB300 GPUs. These processors, part of NVIDIA's "Blackwell Ultra" series, offer 1.5 times the AI performance of prior-generation chips, albeit with power demands of up to 1,400 watts per GPU. To equip the facility, IREN signed a separate $5.8 billion deal with Dell Technologies, which will supply the hardware and supporting infrastructure, the report added.

The deployment, phased through 2026, is expected to generate 200 megawatts of AI computing capacity for Microsoft.

The deal underscores a broader industry trend: Bitcoin miners leveraging their existing power infrastructure to enter the AI market. IREN operates 2,910 megawatts of grid-connected capacity powered entirely by renewables, a critical advantage as AI companies grapple with power constraints. Microsoft CFO Amy Hood has warned that AI capacity shortages will persist through mid-2026, making partnerships like this essential, the report noted.

IREN's stock has surged over 496% year-to-date, reaching $74 per share before the Microsoft announcement. The company now commands a market capitalization exceeding $16.5 billion, up from roughly $1 billion earlier this year. By Q1 2026, IREN aims to generate over $500 million in annual AI cloud revenue, compared to $501 million in total revenue for fiscal 2025 from both Bitcoin mining and AI services combined, the report said.

Analysts remain divided on IREN's prospects. Cantor Fitzgerald and B. Riley have raised price targets to $100 and $74, respectively, comparing IREN's trajectory to AI cloud leader CoreWeave. However, JPMorgan downgraded the stock to "Underweight," arguing that its valuation assumes flawless execution of a complex buildout. The average analyst price target stands at $60.38, according to the report.

Despite the optimism, challenges loom. IREN must deploy thousands of GPUs on an aggressive timeline, with Microsoft retaining the right to terminate the contract if deadlines slip. Supply chain bottlenecks for NVIDIA's advanced chips and the technical complexity of liquid-cooled data centers add risk. The company plans to fund the $5.8 billion Dell purchase through existing cash, customer prepayments, and new financing, though additional capital raises could dilute shareholders, the report warned.

IREN's success hinges on its ability to execute. Co-founder Daniel Roberts called the Microsoft deal a "milestone" that positions the company as a trusted AI infrastructure provider, while Microsoft's Jonathan Tinter praised IREN's "integrated AI cloud expertise." As the AI arms race intensifies, IREN's transformation—from Bitcoin miner to Microsoft partner—exemplifies the volatile yet lucrative opportunities reshaping the tech landscape, the report concluded.