IREN Secures Major AI GPU Cloud Contract with Microsoft
IREN, a leading Bitcoin mining company, has signed a five-year agreement with Microsoft to provide large-scale GPU cloud services. The deal, valued at $9.7 billion, grants Microsoft access to Nvidia GB300 GPUs hosted in IRENs data centers. This partnership marks a significant step in integrating traditional mining infrastructure with the growing demands of big technology firms for artificial intelligence (AI) computing power.
Diversifying Beyond Bitcoin Mining
The multi-year contract underscores IRENs ongoing shift from a pure-play Bitcoin mining company to a broader provider of AI cloud services. Since mid-2023, IREN and others in the sector have been adapting their business models amid rising competition and increasing capital requirements in crypto mining. The company began generating revenue from high-performance computing and AI services after its strategic pivot in early 2024.
In addition to the Microsoft deal, IREN announced a $5.8 billion agreement with Dell Technologies. The funds from this deal will be used to acquire GPUs and supporting equipment, enabling further expansion of its AI infrastructure. IREN plans to finance these capital expenditures through cash reserves, prepayments from customers, internal cash flow, and new financing.
Market Response and Industry Context
Following the announcement, IREN shares saw significant gains, reflecting positive sentiment among investors. Other major mining firms are also pursuing AI-related opportunities. In 2024, MARA Holdings introduced an immersion cooling system designed for dense compute workloads, while Riot Platforms has started exploring expansions into AI and high-performance computing sectors.
In another landmark agreement, Fluidstacka cloud platform supported by Alphabetentered a major colocation deal with a crypto miner in August 2023. The agreement spans ten years, with possible five-year extensions, highlighting a broader industry trend toward AI-focused infrastructure.
- The Microsoft agreement reinforces IRENs position in AI cloud computing.
- Miner diversification reflects adaptation to a changing market landscape.
- Strategic partnerships are central to new revenue streams for mining companies.
With these moves, IREN and its peers are positioning themselves at the intersection of digital assets and the evolving AI infrastructure ecosystem.
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