IREN's Billion-Dollar Pivot: Dell, Nvidia, and Microsoft Align as Bitcoin Mining Fades

A $9.7 billion cloud computing contract with Microsoft has become the cornerstone of IREN's rapid transformation from a cryptocurrency miner into a full-fledged artificial intelligence infrastructure provider. The company is now backing that anchor deal with a hardware buying spree, placing a $1.6 billion order through Dell for Nvidia's Blackwell systems to power its data centers in Texas.

The new hardware, destined for the Childress campus, is slated to go live in early 2027. That investment has prompted IREN to raise its annualized recurring revenue target to $4.4 billion from an earlier $3.7 billion forecast. A separate five-year cloud agreement with Nvidia valued at $3.4 billion further bolsters the top-line projection.

Financing the expansion requires deep pockets. In mid-May 2026, IREN placed a $3 billion convertible bond — $2.6 billion base with a $400 million greenshoe — carrying a 1% coupon and a conversion price set 32.5% above the issue price. The proceeds will fund infrastructure projects in both the United States and Australia. Separately, the company secured a $3.6 billion credit package to support the chip acquisition. As of late April, IREN held around $2.6 billion in cash, providing a sturdy liquidity base.

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

Nvidia's role extends beyond that of a mere supplier. The chip giant received an option to buy up to 30 million IREN shares at $70 apiece over five years, a potential $2.1 billion investment that ties Nvidia's own fortunes to IREN's buildout. Nvidia CEO Jensen Huang has described demand for AI hardware as "parabolic," a sentiment echoed by Dell, which saw its AI server revenue surge 757% to $16.1 billion. Nvidia's own data-center revenue jumped 92% in its fiscal first quarter of 2027.

Institutional investors are taking notice. Hedge fund legend Paul Tudor Jones boosted his IREN stake by 57%, and the company's inclusion in the Russell 3000 Index has increased its visibility among large asset managers. Analysts remain broadly bullish: the consensus rating is "Moderate Buy" with a median price target of $82.50, implying roughly 29% upside from current levels. Both HC Wainwright and BTIG have reiterated buy ratings, pointing to the aggressive capacity expansion and the long-term Microsoft contract.

The stock ended last week at €54.50, down 0.89%, yet remains about 35% above its 50-day moving average. Technical support sits near €54, while resistance at $75 (around €69) represents the next major hurdle. The 52-week high of €66.51 is about 18% above Friday's close. Near-term catalysts include Palo Alto Networks' quarterly results on June 2 and SoftBank's multibillion-dollar AI investment in France, both of which could ripple across the sector.

IREN's market capitalization stands at roughly $22.7 billion, placing it among the world's most valuable data-center operators. The market price of €54.50 only partially reflects the scope of the company's transformation. Execution on the $1.6 billion Dell deal and the ramp to 480 megawatts of capacity and 150,000 GPUs by year-end will determine whether the shares can break higher in the weeks ahead.

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IREN Stock: New Analysis - 31 May

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