Bitcoin miner IREN surged 16% Monday after raising its year-end AI cloud revenue target to more than $4 billion, up from a previous forecast of $3.5 billion, following $2.8 billion in new contracts with AI developers. The stock rallied on heavy volume as investors rewarded the company’s accelerating pivot from pure-play Bitcoin mining to high-margin AI infrastructure.
The Sydney- and Houston-based firm signed multi-year agreements with three AI companies for GPU capacity across its Texas and British Columbia data centers. The contracts include minimum revenue commitments and expansion options, providing visibility through 2027. IREN said the deals bring its total contracted AI cloud revenue to $3.2 billion, with an active pipeline that management expects to close the gap to the new $4 billion target by December.
“The speed at which we’ve converted our power portfolio into AI revenue has exceeded our internal projections,” said CEO Daniel Roberts. “Our 750MW of secured power capacity — originally built for Bitcoin mining — is uniquely positioned to serve the voracious demand for AI compute.”
IREN’s transformation mirrors a broader sector trend. Peers including Core Scientific, Hut 8, and Bit Digital have all announced major AI infrastructure deals in recent months, capitalizing on the scarcity of data-center-ready power in North America. Bernstein analysts estimate the miner-to-AI pivot could unlock $15-20 billion in incremental market cap across the public mining sector by 2026.
The company’s Bitcoin mining operations continue alongside the AI buildout, with IREN producing 732 BTC in June at an average all-in cost of roughly $28,000 per coin. Management said mining cash flow funds the AI capital expenditure without requiring equity dilution, a key differentiator versus pure-play data center REITs.
Shares closed at $14.82, up 16% on the day and 85% year-to-date. Options volume spiked, with call open interest concentrated at the $15 and $17.50 strikes for August expiry. Source: Cointelegraph
