IREN Raises AI Cloud Run-Rate Above $4B; Shares Jump 16%

IREN’s shares rose about 16% on Monday after the company raised its year-end AI cloud annualized run-rate revenue target to more than $4 billion following $2.8 billion in new multi-year cloud services contracts with AI developers.

The company said roughly 85% of the revised annualized AI cloud revenue target is now under contract, with customers that include Microsoft, Nvidia, Perplexity and Figure AI. Recent agreements include customer prepayments that cover about 45% of the GPU capital expenditures tied to those deployments, which the company said will reduce the funding required for new capacity.

IREN also updated its capacity plan, announcing a target to deliver 480 megawatts of AI cloud capacity in 2026, up from about 3 megawatts a year earlier, and targeting 1.2 gigawatts for 2027. The company noted demand from hyperscalers, enterprises and AI developers “continues to exceed the company’s available and planned capacity.”

Market activity reflected the announcement: the CoinShares Bitcoin Mining ETF rose about 9.6% and IREN is the fund’s fourth-largest holding, representing roughly 10% of assets. Analysts at Bernstein had earlier estimated that IREN’s AI cloud business could become the company’s primary revenue driver as it repurposes mining infrastructure for high-performance computing workloads.

The company reported the contracts as multi-year cloud services agreements and included the new revenue in an updated business outlook that set out the capacity targets and financing details.