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    IREN (IREN) Is Up 26.0% After Microsoft AI Cloud Deal Highlights Shift Beyond Bitcoin Mining

    Simply Wall St·01/06/2026 09:47:10
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    • In early January 2026, IREN Limited filed a US$660.98 million shelf registration covering 17,500,000 ordinary shares tied to its 2025 Omnibus Incentive Plan, while investors focused on its dual exposure to bitcoin mining and AI data center infrastructure anchored by a US$9.70 billion Microsoft GPU cloud contract.
    • This combination of an employee-share registration and a large-scale AI cloud agreement with Microsoft underscores IREN’s transition from a pure bitcoin miner toward a broader power-backed digital infrastructure provider.
    • Against this backdrop, we’ll now examine how the Microsoft AI cloud contract reshapes IREN’s existing investment narrative and risk profile.

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    IREN Investment Narrative Recap

    To own IREN today, you need to believe it can balance its bitcoin mining exposure with a profitable buildout of power-rich AI data centers under long-term customer demand. The new US$660.98 million shelf registration tied to the 2025 Omnibus Incentive Plan adds a potential source of dilution, but it does not change the fact that the near term story still hinges on execution of the Microsoft GPU cloud contract and on bitcoin price volatility.

    The most relevant recent announcement here is IREN’s US$9.70 billion, five year AI cloud agreement with Microsoft, which anchors its pivot toward GPU powered, high availability data centers in Texas. That contract remains the core catalyst that could help offset earnings swings from bitcoin mining, but it also raises the stakes on capital spending, power sourcing and timely delivery of new capacity such as the planned Sweetwater 1 site.

    Yet even with these growth drivers, investors should be aware that rising capital needs and dilution risk could...

    Read the full narrative on IREN (it's free!)

    IREN's narrative projects $1.5 billion revenue and $1.0 billion earnings by 2028.

    Uncover how IREN's forecasts yield a $83.00 fair value, a 72% upside to its current price.

    Exploring Other Perspectives

    IREN 1-Year Stock Price Chart
    IREN 1-Year Stock Price Chart

    Twenty six fair value estimates from the Simply Wall St Community range from US$15.96 to US$136, highlighting sharply different views on IREN’s potential. You should weigh this dispersion against IREN’s heavy data center and GPU capital spending, which could pressure cash flows if conditions turn, and compare several perspectives before forming your own view.

    Explore 26 other fair value estimates on IREN - why the stock might be worth less than half the current price!

    Build Your Own IREN Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your IREN research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
    • Our free IREN research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate IREN's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.