IREN Stock Surges 16% After $2.8B in New AI Contracts Push Cloud Revenue Target Past $4B

BBTC$65,512.00▲1.16% miner IREN saw its shares jump 16% after signing $2.8 billion in new contracts with AI developers and raising its fiscal year-end AI cloud annualized run-rate revenue target above $4 billion — a dramatic pivot from crypto mining toward high-margin GPU cloud services that has investors revaluing the company overnight. (CoinTelegraph)

The $2.8 billion contract haul was signed with AI developers, not retail customers. That distinction matters. Enterprise-grade demand for IREN’s GPU-as-a-Service infrastructure is now large enough to dwarf the company’s existing operations, which generate approximately $1.25 billion in annualized revenue, according to research cited in market commentary. (MarketWebs Roadmap) To put a finer point on it: IREN’s new AI cloud pipeline is more than twice the size of its current entire revenue base.

Underpinning the whole buildout is a significant NVIDIA relationship. A separate research snippet references a $2.1 billion option agreement tied to up to 30 million shares and NVIDIA GPU deployment — suggesting IREN has locked down access to the hardware every AI cloud competitor is scrambling for. (Schwab Network) GPU supply is the binding constraint in this market. That agreement, not the Bitcoin mining rigs still carrying the company’s name, is the real asset behind the ARR target.

IREN’s legacy business gives investors the baseline they’re trading against. Bitcoin was changing hands at $64,888, up 0.65% over 24 hours, with BTC dominance sitting at 56.6%. The broader crypto market cap stood at $2,301 billion, up just 0.24% on the day. The Fear & Greed Index read 29 out of 100 — squarely in Fear territory. None of that points to a crypto sector roaring enough to justify a 16% equity pop on mining fundamentals alone. This is an AI re-rating. Full stop.

And IREN is not alone in making the leap. The pivot mirrors momentum across the sector: peers like CoreWeave and Nebius are also scaling AI cloud GPU rental businesses, with CoreWeave reporting strong revenue growth and Nebius surging roughly 11% in a recent session. Crypto miners broadly have been repurposing or expanding data center infrastructure to serve AI and GPU demand, diversifying away from Bitcoin mining revenue that stays permanently exposed to halving compression and volatile hash economics. IREN’s announcement is the latest data point in that trend — and by dollar value, the largest.

The skepticism here writes itself. A company whose existing operations generate $1.25 billion in annualized revenue is now guiding to more than $4 billion in AI cloud ARR by fiscal year-end. That gap — roughly $2.75 billion of incremental run-rate revenue — requires not just signed contracts but deployed GPUs, energized data centers, and operational execution at a scale IREN has never demonstrated. The $2.1 billion NVIDIA option agreement suggests the hardware pipeline exists. Whether the deployment timeline actually matches the revenue target is the question the stock’s next leg will answer.

For now, the market is pricing the story, not the balance sheet. IREN’s 16% surge reflects investor willingness to treat a Bitcoin miner as an AI infrastructure play — and to pay for the option value of that transformation before the revenue fully materialises. The contracts are signed. The target is set. What comes next is whether IREN can convert $2.8 billion in paper commitments into deployed, revenue-generating GPU capacity before competitors with deeper pockets close the same gap.