IREN signs $9.7B Microsoft deal, shifts toward AI cloud
Shares of Australian Bitcoin miner IREN surged nearly 14% after the company announced a $9.7 billion agreement with Microsoft for data center capacity, making Microsoft its largest client.
Additionally, IREN signed a $5.8 billion partnership with Dell (DELL) to purchase processors and supporting infrastructure.
IREN stock hourly chart. Source: TradingView
“Historically, we built high-quality data centers powered by surplus Bitcoin mining equipment, but we always envisioned alternative future use cases such as AI,” said IREN Chief Commercial Officer Kent Draper.
Major shift from Bitcoin mining to AI infrastructure
IREN, formerly known as Iris Energy, announced earlier this year that it would scale back Bitcoin mining operations and prioritize its AI and cloud data center business.
This agreement marks a turning point in the industry, as Bitcoin miners are evolving into key participants in the AI infrastructure boom, signing long-term deals to utilize their land, power, and data center resources for AI workloads.
“Bitcoin miners are now integral to the AI value chain, providing ‘warm shells’ for AI data centers, which are currently the biggest bottleneck in AI processing,” wrote Bernstein analyst Gautam Chhugani in a note to investors.
The saturated mining field and volatile Bitcoin prices have reduced profitability, while the quadrennial Bitcoin halving has further cut revenues over time.“As IREN continues scaling its AI business, we see significant opportunities for exponential growth,” Bernstein added.
As we wrote, Microsoft latest news: slides below MA-20 with mixed momentum — RSI near oversold
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