IREN’s Nvidia Pact Puts $2.1 Billion on the Table as Bitcoin Mining Fades Into History

The transformation of Iris Energy from a crypto miner into an AI infrastructure provider has reached an inflection point. The company has secured a strategic partnership with Nvidia that includes both a multi-year equity option and a $3.4 billion services contract, while simultaneously posting quarterly results that underscore the painful costs of such a radical pivot.

The deal’s centerpiece is a five-year warrant granting Nvidia the right to purchase up to 30 million IREN shares at $70 apiece. If exercised in full, that option would inject $2.1 billion into the company’s coffers. But the arrangement goes far deeper than a simple capital raise. The two companies have also signed a separate five-year agreement under which IREN will provide managed GPU cloud services for Nvidia’s internal AI and research workloads, using air-cooled Blackwell systems housed in a 60-megawatt data center in Childress, Texas. Those services are slated to begin in early 2027.

The fresh capital from the warrant—should Nvidia choose to exercise it—is earmarked for accelerating IREN’s data center buildout. The company is targeting 5 gigawatts of capacity, designed specifically around Nvidia’s architecture for AI factories. Its flagship Sweetwater campus in Texas already has live server racks running for Microsoft, and in early May IREN energized a 1.4-gigawatt substation there, a critical milestone toward reaching 1.2 gigawatts of capacity by 2027.

Europe is now firmly in the crosshairs as well. IREN has acquired the Spanish developer Nostrum Group, adding roughly 490 to 500 megawatts of secured grid connection capacity to its portfolio. The Spanish sites offer access to renewable energy and are seen as regulatory-friendly for national AI programs within the European Union.

Should investors sell immediately? Or is it worth buying IREN?

Yet for all the strategic fireworks, the numbers tell a more sobering story. In the fiscal third quarter ended March 2026, IREN generated $144.8 million in revenue—far below the consensus estimate of $220.2 million. Bitcoin mining still contributed $111.2 million of that total, while the AI cloud unit contributed just $33.6 million, though that figure doubled from the prior year. The net loss ballooned to $247.8 million, up from $155.4 million in the previous quarter, driven largely by non-cash write-downs on retired mining hardware.

The market’s reaction was characteristically volatile. IREN shares initially surged as much as 27% in after-hours trading before reversing course to close down nearly 7% at $56.85. On a euro-denominated basis, the stock ended the session at €48.54. Over the trailing seven days, however, the stock still posted a 25% gain. On Friday, European trading saw the shares climb more than 7% to €52.01, pushing the year-to-date advance past 42%.

Management is targeting an annualized revenue run rate of $3.7 billion by the end of 2026. Hitting that number hinges on bringing 480 megawatts of capacity online by year-end and replacing the dwindling mining revenue with AI cloud services at a rapid clip. The company’s balance sheet provides some cushion: cash reserves stand at $2.6 billion, and the Nvidia warrant offers a potential further $2.1 billion in liquidity.

IREN at a turning point? This analysis reveals what investors need to know now.

The message from the corner office is clear: the crypto era is over, and the AI era has begun. Whether the market has the patience to wait for the transition to pay off remains the open question.

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