IREN Expands AI Cloud Capacity with $674M GPU Investment, Targets $500M ARR

Executive Summary

IREN Limited has announced a substantial expansion of its AI Cloud capacity, investing approximately $674 million in an additional 12,400 graphics processing units (GPUs). This strategic move doubles the company's AI Cloud fleet to approximately 23,000 GPUs and establishes a new annualized run-rate revenue target exceeding $500 million by the first quarter of 2026. The announcement led to an 11% jump in IREN's pre-market stock trading to $43.

The Event in Detail

On Monday, IREN Limited disclosed its procurement of 12,400 additional GPUs, bringing its total AI Cloud capacity to approximately 23,000 units. The investment, valued at $674 million, includes a combination of 7,100 NVIDIA B300s, 4,200 NVIDIA B200s, and 1,100 AMD MI350Xs. This expanded fleet will comprise 1,900 NVIDIA H100s & H200s, 19,100 NVIDIA B200s & B300s, 1,200 NVIDIA GB300s, and 1,100 AMD MI350Xs. Deliveries of these units are scheduled incrementally over the coming months and will be deployed at IREN's Prince George campus in British Columbia. The company stated that its British Columbia facilities are capable of supporting more than 60,000 Blackwell GPUs in the future.

Financial Mechanics

The $674 million investment in high-performance GPUs positions IREN to capture a segment of the burgeoning AI compute market. This capital allocation directly supports the company's stated goal of achieving an annualized run-rate revenue of over $500 million from its AI Cloud services by the conclusion of the first quarter of 2026. InvestingPro data indicates IREN's current revenues stand at $501.02 million with a current ratio of 4.29, suggesting robust liquidity to support its expansion initiatives. The company's year-to-date return of 293.48% reflects strong investor confidence preceding this announcement, with its market valuation at $10.51 billion. Financing workstreams are underway to facilitate this growth, with the company expecting to mitigate any impact on its existing 50 EH/s Bitcoin mining operations through the strategic redeployment of ASICs to other sites.

Business Strategy and Market Positioning

IREN's expansion reflects a strategic pivot towards diversifying its revenue streams beyond traditional Bitcoin mining. This move is aligned with a broader industry trend where Bitcoin miners are increasingly transitioning their infrastructure to accommodate AI data centers. The post-halving environment for Bitcoin mining, which reduced mining profits by 50%, has created economic pressures driving this diversification. IREN is leveraging its existing assets, including robust electrical infrastructure, cooling systems, and large-scale data center operations, which are foundational for AI infrastructure development. The company’s integrated platform and ability to rapidly scale are highlighted by Co-Founder and Co-CEO Daniel Roberts, who noted, > "As global demand for compute accelerates, customers are increasingly seeking partners who can deliver scale quickly." He added that the shift toward pre-contracting capacity ahead of delivery provides further momentum for their AI Cloud business. The addition of AMD hardware alongside NVIDIA GPUs is intended to broaden IREN's offering and addressable market.

Market Implications

The expansion of IREN's AI Cloud capacity has several market implications. For IREN, it signifies a reduction in cyclical exposure to Bitcoin price volatility by establishing a substantial revenue stream tied to the broader AI compute market, where demand currently outpaces supply. The 11% pre-market stock jump illustrates immediate positive investor response to this strategic diversification. More broadly, this action by a major cryptocurrency infrastructure company underscores the increasing synergy and investment flow between the crypto and AI sectors. It sets a precedent for other Bitcoin miners to re-evaluate and potentially transform their business models, shifting capital and resources towards high-performance computing. Industry analysts project that approximately 20% of Bitcoin miner power capacity will pivot to AI by the end of 2027, indicating a significant reallocation of computational resources. This trend could attract more traditional technology investors into crypto-adjacent companies and reshape the competitive landscape within both the AI infrastructure and digital asset mining industries.

Expert Commentary

Daniel Roberts, Co-Founder and Co-CEO of IREN, emphasized the company's responsiveness to market demand: > "As global demand for compute accelerates, customers are increasingly seeking partners who can deliver scale quickly." He further stated, > "Doubling our fleet to more than 23,000 GPUs in just a few months highlights the strength of our vertically integrated platform and our ability to meet urgent, long-term demand. The shift toward pre-contracting ahead of delivery provides further momentum for the growth of our AI Cloud business."

Broader Context

IREN's strategic pivot is situated within a significant transformation occurring in the cryptocurrency mining industry. The demand for artificial intelligence infrastructure is creating unprecedented opportunities for companies with existing power and data center assets. Companies like Core Scientific, Hut 8 Corp., and Bit Digital are also aggressively pursuing AI deals and infrastructure development, demonstrating the compelling economics of pivoting towards high-performance computing workloads. This includes leveraging expertise in managing extensive electrical infrastructure and cooling systems. The company controls 2.91 GW of grid-connected power across the U.S. and Canada, with 810 MW of operating data-center capacity, providing a strong foundation for its AI initiatives. This industry-wide evolution reflects a fundamental shift in how computational resources are allocated, with Bitcoin miners positioning themselves to become key providers in the rapidly expanding AI ecosystem.