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    IREN (IREN) Is Up 24.3% After Landmark Microsoft AI Cloud Deal Reshapes Its Business Mix

    Simply Wall St·12/25/2025 17:18:55
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    • In recent weeks, IREN’s repositioning toward AI infrastructure has gained momentum, anchored by a five‑year, roughly US$9.70 billion AI cloud services contract with Microsoft and backed by large convertible note and equity financings to fund GPU‑rich data centers.
    • These developments mark a shift in IREN’s business mix from primarily Bitcoin mining toward long‑duration, enterprise AI cloud revenue, tying its fortunes more closely to hyperscaler demand than to crypto cycles.
    • We’ll now examine how the landmark Microsoft AI cloud contract reshapes IREN’s existing investment narrative around growth, risk, and capital intensity.

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    IREN Investment Narrative Recap

    To own IREN today, you need to believe it can successfully evolve from a volatile Bitcoin miner into a scaled AI infrastructure provider, turning its Microsoft GPU cloud deal into durable revenue. The recent contract news directly reinforces the key short term catalyst, which is timely build out and deployment of AI data centers, while also amplifying the biggest current risk around capital intensity, leverage, and potential dilution if execution slips or demand softens.

    The most relevant recent announcement here is IREN’s December 2025 financing package, combining roughly US$2.3 billion of low coupon convertible notes with a US$1.6 billion equity raise. This funding underpins the Microsoft agreement by providing the capital to roll out GPU rich capacity, but it also crystallizes the trade off investors now face between pursuing rapid AI cloud growth and accepting higher financial risk and shareholder dilution as part of that journey.

    Yet behind the excitement of a US$9.7 billion AI cloud contract, investors should also be aware of the growing execution and funding risk tied to...

    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 $81.85 fair value, a 95% upside to its current price.

    Exploring Other Perspectives

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

    Twenty two members of the Simply Wall St Community estimate IREN’s fair value between US$15.96 and US$119.99, with views spread across this wide range. As you weigh those opinions, keep in mind that the Microsoft AI cloud deal now makes timely, capital intensive data center build outs a central driver of IREN’s future performance.

    Explore 22 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 3 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.