Canaccord Genuity says IREN’s landmark partnership with Microsoft positions the bitcoin miner as a rising power in AI infrastructure.
In a move that could redefine the company’s trajectory, IREN has signed a $9.7 billion GPU cloud contract with Microsoft, signaling its transformation from a bitcoin miner into a key player in the artificial intelligence infrastructure sector. According to Canaccord Genuity, this deal marks a pivotal shift for IREN, unlocking new revenue streams and diversifying its business model beyond cryptocurrency mining.
Analyst Upgrades and Market Reaction
Following the announcement, Canaccord raised its price target on IREN shares from $42 to $70, while reaffirming a “buy” rating. The brokerage emphasized that the five-year contract and IREN’s expanding Texas data centers could generate sustained growth.
“This partnership with Microsoft changes the narrative for IREN — it’s no longer just a bitcoin miner but a next-generation AI infrastructure provider,” analysts led by Joseph Vafi noted in their report.
Despite the upgrade, IREN’s shares closed 6.8% lower at $62.38 on Friday, reflecting short-term volatility amid the broader market adjustment.
Deal Highlights and Financial Impact
The agreement includes a 20% prepayment from Microsoft and a projected 32% levered internal rate of return (IRR), offering strong financial backing. Under the deal, IREN will supply Microsoft with Nvidia GB300 GPUs from its Horizon data centers in Texas — a development expected to fund roughly half of the $3 billion Horizon buildout.
Microsoft’s upfront payment and credit support help reduce project risk, analysts said, especially as global demand for high-performance computing accelerates.
Canaccord also pointed to IREN’s Sweetwater 1 site, a two-gigawatt facility slated to come online in 2026, as a key catalyst for further growth as power scarcity drives data center expansion across the U.S.
Bridging Crypto and AI
In its latest quarter, IREN reported $240.3 million in revenue, a 355% year-on-year increase, underlining the company’s operational scale and efficient energy strategy. Analysts believe IREN’s low-cost power and vertically integrated model uniquely position it at the intersection of bitcoin mining and AI infrastructure.
The Microsoft deal not only secures IREN’s financial future but also cements its role as a bridge between the worlds of cryptocurrency and artificial intelligence.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.