Crypto stock surges after $9.7B Microsoft deal

AI cloud computing company and Bitcoin (BTC) miner IREN (NASDAQ: IREN) signed a multi-year GPU cloud services contract with Microsoft on Oct. 3.

Under the agreement, IREN will supply Microsoft with access to NVIDIA GB300 GPUs through its vertically integrated AI Cloud platform.

Following the news, the stock was trading 20.03% higher during pre-market hours on Monday.

The stock also closed 4.35% higher on Friday.

The five-year deal, valued at roughly $9.7 billion, includes a 20% prepayment and marks a significant step in IREN’s expansion into large-scale artificial intelligence (AI) infrastructure.

The company has also signed a $5.8 billion procurement deal with Dell Technologies to source the GPUs and supporting equipment.

Related: IREN Reports Strong FY24 Financial Results with Major Growth and Expansion

The new hardware will be deployed at IREN’s 750-megawatt Childress, Texas, campus throughout 2026. The facility will include liquid-cooled data centers capable of supporting 200 megawatts of critical IT load across its Horizon 1–4 development phases.

IREN plans to fund the capital expenditures using a mix of cash reserves, customer prepayments, operational cash flows, and additional financing. Daniel Roberts, IREN’s co-founder and co-CEO, said:

“This agreement not only validates IREN’s position as a trusted provider of AI Cloud services, but also opens access to a new customer segment among global hyperscalers.”

Jonathan Tinter, Microsoft’s president of business development and ventures, added that the collaboration will “deliver cutting-edge AI infrastructure” for global customers, citing IREN’s expertise in data center operations and secured power capacity as key advantages.

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Iren's AI expansion plans

Founded in 2019 as a Bitcoin mining company, IREN built its foundation on developing high-efficiency data centers powered by renewable energy. As the global demand for AI infrastructure accelerates, IREN is strategically expanding beyond Bitcoin mining to become a vertically integrated AI Cloud provider.

The pivot leverages its existing power-secured sites, cooling expertise, and scalable infrastructure, assets that align naturally with GPU-intensive AI workloads. By deploying NVIDIA-powered clusters for hyperscalers like Microsoft, IREN aims to diversify revenue streams, reduce reliance on Bitcoin price cycles, and position itself at the forefront of the AI-driven data revolution.

Story Continues

On Oct. 23, during an interview with Investor's Business Daily, IREN Chief Commercial Officer Kent Draper discussed the company's AI plans.

"This isn't a pivot for us. This has been the strategy from day one," he said.

"Going back seven to eight years ago, when the business was founded, it was around the thesis of fast growth in the digital space, increasing digitization of everything, and increasing data dependency."

IREN is going to release its earnings on Nov. 6.

This story was originally reported by TheStreet on Nov 3, 2025, where it first appeared in the Stock Ideas section. Add TheStreet as a Preferred Source by clicking here.

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