IREN Pairs $9.7 Billion Microsoft Contract with $3.6 Billion Nvidia Credit Line to Fuel AI Infrastructure Expansion

The scope of IREN’s metamorphosis from bitcoin miner to dedicated AI cloud provider is now measured in numbers that would have seemed fanciful a year ago. Behind last week’s fractional 0.89% dip to €54.50 lies a capital deployment of staggering proportions — anchored by a $9.7 billion compute services agreement with Microsoft and supported by a $3.6 billion credit facility earmarked for Nvidia’s most advanced hardware.

The Microsoft contract is the engine of IREN’s 2026 build-out. To meet that demand, the company is pouring $1.6 billion into a Nvidia Blackwell-only expansion across two Texas sites: an extension of the Childress campus, with installation work scheduled to begin early 2027, and the first phase of the Sweetwater 1 data centre, which came online and connected to the grid in early May. By year-end, IREN aims to have 480 megawatts of capacity and roughly 150,000 graphics processing units operational.

Nvidia’s Stake in the Future

The relationship with Nvidia extends beyond a standard chip purchase. Under the financing terms, Nvidia secured the right to acquire up to 30 million IREN common shares at an exercise price of $70 apiece over a five-year period — a potential $2.1 billion equity injection that ties the chipmaker’s fortunes directly to IREN’s execution. The $3.6 billion credit line itself, secured against long-term technology partnerships, will be used to procure Dell-Blackwell systems, according to the company.

Investor conviction is also showing up in IREN’s shareholder register. Paul Tudor Jones boosted his position by 57%, a vote of confidence timed with the company’s inclusion in the Russell 3000 index, which tends to drive passive inflows. The consensus analyst target of $75 implies roughly 18% upside from last week’s close.

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

Revenue Targets Ratchet Higher

With the Blackwell integration locked in, management raised its annualised recurring revenue forecast from $3.7 billion to $4.4 billion after completing the latest expansion. That upgrade comes on top of a solid liquidity base: as of the end of April, IREN held some $2.6 billion in cash. The company’s earlier $3.7 billion target remains the baseline for year-end 2026, but the new $4.4 billion figure reflects the capacity added by the Nvidia hardware splurge.

That revenue ambition lands in a market that is spending heavily on AI. Gartner projects global AI expenditure will hit $2.59 trillion in 2026, up 47% year-on-year, with more than 45% of that flowing into infrastructure — servers, semiconductors and data centres. The catalyst calendar includes the Computex trade show in Taiwan and Microsoft Build in San Francisco, both starting May 31, where the first Windows PCs powered by Nvidia chips are expected to debut.

Balancing Speed Against Headwinds

The transformation is not without friction. Local opposition to data centre construction has intensified: 25 such projects were halted across the United States in 2025, often over energy consumption and land-use concerns. Analysts also flag a “financing overhang” as the market digests the sheer capital intensity of the plan. IREN’s 30-day annualised volatility of 133% underscores the equity’s sensitivity to execution news.

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

Still, the numbers tell a striking tale. The stock has climbed 617% over the past twelve months and sits 639% above its 52-week trough of €7.38. It currently trades about 35% above its 50-day moving average, with the next technical hurdle the 52-week high of €66.51 — roughly 22% above last week’s level. Whether that ceiling breaks will depend on how quickly the Dell-Blackwell systems go live and how convincingly the Microsoft contract translates into recurring revenue.

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