Key Takeaways:
- IREN closed three new AI cloud deals valued at $2.8 billion.
- It raised its forecast for AI revenue to more than $4 billion by 2026.
- Approximately 85% of the projected ARR is already booked under multi-year agreements.
The distinction between AI and crypto infrastructure is increasingly becoming muddled. IREN, originally known for Bitcoin mining, has strengthened its AI business after securing billions of dollars in new cloud contracts with leading AI developers.
IREN Raises AI Revenue Outlook
As a result of the multi-year AI cloud contracts, IREN’s annualized run-rate revenue (ARR) is forecasted to reach over $4 billion compared to $3.7 billion prior to the announcement and more than $2.5 billion at present.
The company said around 85% of the new ARR target is already under contract, providing strong revenue visibility as additional AI infrastructure comes online.
Its customer base now includes Microsoft, NVIDIA, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI, Hume AI, and another leading AI developer. The agreements cover bare-metal GPUs infrastructure as well as managed AI cloud services.
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Demand Continues to Outpace Supply
While demand continues to exceed IREN’s portfolio capacity, it has also seen more and more demand come in from hyperscalers, enterprises, frontier AI labs and AI developers, IREN stated.
Its Growth of AI cloud capacity has seen the company ramp up to about 3 MW a year ago and with the goal of 480 MW this year, now aims for 1.2 GW by 2027.
The most recent deal also includes the prepayment of about 45% of GPU deployment expenses, lowering IREN’s capital needs and accelerating growth. The average contract duration is around 4 years for the company’s AI contracts.
Crypto Infrastructure Evolves Into AI
IREN created its business on Bitcoin mining, but now slowly positions itself as an AI infrastructure provider. To support AI model training and inference, as well as digital asset operations, its data centers are now established in renewable-energy-rich areas in North America, Europe, and APAC.
IREN had a cash balance of about $7.6 billion and cash equivalents as of June 30, 2026, which included restricted cash related to financing on GPU.
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Bitcoin Miners Accelerate the AI Pivot
IREN’s latest announcement is part of a more widespread trend in the cryptocurrency mining industry. With the margins of mining becoming more competitive, businesses are tapping into increased demand for AI computing power through their power infrastructure and data centers.
Long-term Cloud contracts make more predictable revenue than Bitcoin mining but gives enterprises the benefit to run existing expertise of their large and powerful computing centres.
