Bitcoin News Today: IREN's AI Pivot, Not Bitcoin Roots, Sparks 500% Stock Potential: Analysts

IREN Stock Could Soar Nearly 500% by 2028 on Microsoft AI Deal, Says Cantor

IREN Limited (IREN) has emerged as a major player in the AI infrastructure sector following a landmark $9.7 billion GPU cloud contract with Microsoft, sparking analyst optimism about the stock's long-term potential. Cantor Fitzgerald raised its price target for IREN to $142 from $100, implying over 100% upside from recent levels, while Bernstein and Roth Capital also increased their targets, citing the deal's transformative impactIREN Stock: Top Wall Street Analyst Sees 100% Upside After Microsoft Deal. The agreement, spanning five years, involves IREN supplying Microsoft with Nvidia GB300 GPUs from its Texas-based Horizon data centers and represents a strategic pivot from its origins as a Bitcoin minerMicrosoft Deal Supercharges IREN’s AI Ambitions, Canaccord Says.

The Microsoft contract includes a 20% upfront prepayment, projected to generate a 32% levered internal rate of return and fund roughly half of the $3 billion Horizon data center buildoutMicrosoft Deal Supercharges IREN’s AI Ambitions, Canaccord Says.

This partnership has already validated IREN's ability to secure high-margin, recurring revenue, with the deal expected to contribute $1.94 billion in annualized AI cloud revenue once fully rampedIREN Ltd (IREN) Q1 2026 Earnings Call Highlights: Record Revenue Growth and Strategic Microsoft .... The company's Q1 FY2026 results underscored its accelerating transition, with revenue surging 355% year-over-year to $240.3 million and adjusted EBITDA hitting $91.7 million.

Analysts highlighted IREN's vertically integrated model-controlling power, land, and infrastructure-as a key differentiator. The company plans to scale its GPU fleet to 140,000 units by 2026, targeting $3.4 billion in annualized AI cloud revenueIren targets $3.4B in annualized AI cloud revenue by end of 2026 as Microsoft contract drives expansion. This expansion is supported by $1.8 billion in cash reserves and recent $1 billion in convertible bond financingIREN Limited (IREN) Stock: Plunges as $9.7B Microsoft Contract Fuels AI Expansion Plan. However, JPMorgan cautioned that the rapid buildout could strain the balance sheet, requiring over $9 billion in capital despite Microsoft's prepaymentIREN’s AI-cloud expansion driving long-term upside but near-term strain on balance sheet: JPMorgan.

The Sweetwater 1 data center, a two-gigawatt facility set to launch in 2026, is viewed as a critical catalyst. Canaccord Genuity valued the site at $32 per share, emphasizing IREN's access to affordable power and its ability to scale without relying on third-party co-location partnersIren Stock: Analyst Upgrades Follow Blockbuster Microsoft Partnership. Meanwhile, the stock has already surged 547% year-to-date, though it recently retreated 6.8% following mixed market sentimentMicrosoft Deal Supercharges IREN’s AI Ambitions, Canaccord Says.

While risks remain, including execution challenges and potential dilution, the Microsoft deal has redefined IREN's trajectory. With a 20% prepayment providing capital efficiency and a projected 85% EBITDA margin for the contractIREN Ltd (IREN) Q1 2026 Earnings Call Highlights: Record Revenue Growth and Strategic Microsoft ..., analysts like Cantor's Brett Knoblauch called the partnership "game-changing," positioning IREN to capitalize on the AI infrastructure boomIREN Stock: Top Wall Street Analyst Sees 100% Upside After Microsoft Deal.