Overview
- IREN’s five-year contract will provide Microsoft with Nvidia GB300 GPUs sourced from the company’s Horizon data centers in Texas.
- Canaccord reiterated a buy rating and framed the agreement as transformative for IREN’s pivot from bitcoin mining to AI infrastructure.
- The deal carries a projected 32% levered IRR, and Microsoft’s credit backing and prepayment reduce uncertainty even as chip and power risks persist.
- IREN reported $240.3 million in quarterly revenue, up 355% year over year, and projects ARR rising from $500 million to $2.5 billion under the contract and to $3.4 billion by end-2026.
- Sweetwater 1, a two-gigawatt site slated for 2026, is flagged as the next capacity catalyst, with Canaccord raising its Sweetwater valuation to $32 per share as shares closed 6.8% lower Friday at $62.38.