IREN Secures Landmark $9.7B Microsoft AI Cloud Contract, Stock Surges 20%

Reddit discussions on r/wallstreetbets and related trading subreddits reflect strong retail investor excitement around IREN’s Microsoft deal. Key sentiment themes include:

• Trading Regret
  : Multiple users expressed frustration at missing the entry point, with one commenter noting the stock “dropped premarket then spiked” [1]
• Insider Trading Allegations
  : Some users suggested those who bought last week may have had advance knowledge of the deal [1]
• Profit Recognition
  : Users highlighted the 21% premarket gain as a significant “payday” for early investors [1]
• Earnings Play
  : The reversal from premarket dip to $15 surge was characterized as a classic earnings call trading opportunity [1]

• $9.7 billion, five-year GPU cloud services agreement
  with Microsoft for NVIDIA GB300 GPU access [2]
• 20% prepayment
  included in contract terms, providing immediate cash flow [3]
• Deployment location
  : IREN’s 750MW Childress, Texas campus across liquid-cooled data centers (Horizon 1-4) [4]
• Equipment procurement
  : Separate $5.8 billion agreement with Dell Technologies for GPU sourcing [5]

• Strategic pivot
  : IREN (formerly Iris Energy) transitioned from pure Bitcoin mining to hybrid AI cloud services in 2024-2025 [6]
• Infrastructure leverage
  : Company utilizing existing data centers and electrical infrastructure for AI workloads [7]
• GPU expansion
  : Fleet doubled to ~23,000 units with $674 million spent on NVIDIA/AMD accelerators [8]

• Current revenue mix
  : FY2025 crypto mining generated $485M (97%) while AI/cloud contributed only $16M (3%) [9]
• Growth trajectory
  : Projected AI-cloud annualized revenue run-rate of $200-250M by December 2025 and
  $500M+ by early 2026
  [10]
• Market reaction
  : Stock surged
  18-20% in pre-market trading
  following announcement [11]
• Strategic positioning
  : IREN became NVIDIA Preferred Partner in August 2025, gaining priority GPU access [12]

The Reddit retail sentiment aligns with the fundamental significance of this transformative deal. While some users’ insider trading allegations remain unsubstantiated, the contract’s scale ($9.7B) represents a

, justifying the explosive stock reaction.

The deal validates IREN’s strategic pivot from crypto mining to AI infrastructure. However, the execution risk is substantial - AI/cloud currently represents only 3% of revenue, requiring massive operational scaling to meet Microsoft’s demands. The 20% prepayment provides crucial upfront capital for this expansion.

:

• Revenue Transformation
  : Success would shift IREN from crypto volatility to recurring enterprise AI contracts
• Infrastructure Advantage
  : Existing data centers provide competitive edge over pure-play AI startups
• Execution Risk
  : Scaling from $16M to projected $500M+ AI revenue within 12-18 months is ambitious

• Contract Backlog
  : $9.7B provides 5+ years of visibility vs. crypto mining volatility
• Strategic Partnerships
  : Microsoft relationship could lead to additional enterprise contracts
• Infrastructure Moat
  : Vertically integrated model with owned power and facilities
• NVIDIA Partnership
  : Preferred status ensures priority access to high-demand GPUs

• Execution Scale
  : Massive operational ramp required from current $16M AI revenue base
• Capital Requirements
  : $5.8B Dell agreement suggests significant ongoing capital needs
• Competition
  : Established cloud providers (AWS, Google Cloud) may respond aggressively
• Dependency
  : Heavy reliance on single customer (Microsoft) for AI transformation
• Crypto Legacy
  : Bitcoin mining operations still dominate revenue and may face separate headwinds