NEW YORK — IREN Ltd. shares jumped more than 8% in morning trading Friday, climbing to $40.21 as investors embraced the former Bitcoin miner's aggressive pivot into artificial intelligence infrastructure, highlighted by plans to scale its GPU fleet to 150,000 units and target billions in annualized AI cloud revenue.

IREN Limited
IREN Limited

The Sydney-based company, listed on Nasdaq as IREN, added $3.15, or 8.50%, by 11:20 a.m. EDT. The rally reflected renewed enthusiasm for IREN's transformation from a renewable-powered Bitcoin miner into a high-performance computing and AI data center operator, leveraging its massive secured power portfolio amid surging demand from hyperscalers.

IREN, formerly known as Iris Energy, has rapidly expanded its data center footprint across North America. It now controls more than 4.5 gigawatts of secured grid-connected power, with approximately 810 megawatts already operational and additional capacity under construction or in development at sites including Sweetwater and Childress in Texas, Mackenzie in British Columbia, and a new 1.6GW campus in Oklahoma.

The company's latest move came in early March 2026 when it announced purchase agreements for more than 50,000 NVIDIA B300 GPUs, bringing its total committed fleet to 150,000 GPUs. Management projects this scale could support over $3.7 billion in AI cloud annualized run-rate revenue by the end of 2026, with phased deployments planned across existing air-cooled capacity in Mackenzie and Childress during the second half of the year. Some estimates suggest even higher potential if additional liquid-cooled expansions come online.

This AI push builds on a landmark multi-year agreement with Microsoft announced late last year, valued at approximately $9.7 billion for 200 megawatts of AI cloud capacity. The deal included upfront payments and has served as a blueprint for further hyperscaler engagements. IREN has secured significant financing, including $3.6 billion tied to the Microsoft contract and nearly $9.3 billion in total funding commitments over recent months, with an at-the-market equity program established to support further capital needs.

Bitcoin mining remains an important cash-flow engine during the transition. In its fiscal second-quarter 2026 results released Feb. 5, IREN reported revenue of about $184.7 million, though it missed some analyst expectations amid fluctuating crypto prices and investment in growth. The company has achieved operating hashrates around 43 EH/s to 50 EH/s in recent periods, mining hundreds of Bitcoin monthly while maintaining a focus on 100% renewable energy sources.

Analysts have grown increasingly optimistic about the dual-engine strategy. Some price targets reach as high as $80 or more, citing the massive upside from AI infrastructure if IREN successfully monetizes its power pipeline. Bernstein and H.C. Wainwright have highlighted the stock as a top AI play for 2026, noting its ability to repurpose mining infrastructure for high-density GPU workloads with lower build times than traditional data centers.

The pivot addresses a critical bottleneck in the AI boom: reliable, scalable power. Hyperscalers face years-long waits for new grid connections, while IREN's pre-secured sites in renewable-rich or low-cost energy regions offer faster deployment. Sites like Sweetwater, with a 2GW potential across more than 1,800 acres, are designed for both Bitcoin mining and liquid-cooled AI clusters capable of hosting hundreds of thousands of advanced GPUs.

In February 2026, IREN appointed John Gross as chief innovation officer to accelerate its AI and high-performance computing initiatives. The company was also added to the MSCI USA Index, potentially drawing increased institutional investment from passive funds.

Challenges accompany the ambitious growth. Recent equity offerings and capital raises have led to share dilution concerns, contributing to volatility. The stock has pulled back from earlier 2026 highs near $76 amid broader market swings in crypto and AI-related names, though it remains up dramatically over the past year on the AI narrative. Q2 FY26 results showed a net loss as the company invested heavily in expansion, with next earnings expected around May 13.

Gross margins and profitability will face pressure during the heavy capex phase, including roughly $3.5 billion in additional spending targeted for the second half of 2026. Execution on GPU deployments, securing additional hyperscaler contracts and navigating regulatory or grid timelines will be critical. Competition is intensifying as other former miners and pure-play data center operators vie for AI workloads.

Despite near-term hurdles, IREN's vertically integrated model — owning land, power infrastructure and now GPU capacity — positions it to capture higher-margin recurring revenue from AI cloud services compared to traditional mining. Its data centers support flexible use cases, with some facilities already running Bitcoin miners and AI servers side-by-side during the transition.

The broader sector tailwinds are powerful. Global electricity demand from AI data centers is projected to surge, with power availability emerging as the primary constraint. Companies like IREN that can deliver gigawatts of ready infrastructure stand to benefit significantly. Recent peer deals, such as large GPU capacity agreements with Microsoft, have reinforced investor belief in the model's scalability.

IREN continues to advance physical development. Sweetwater 1 energization is imminent or advancing, with substation and civil works progressing. Horizon projects in Texas and expansions in Canada are on schedule, supporting both current mining operations and future AI buildouts. The company emphasizes sustainable practices, using renewable energy to appeal to environmentally conscious tech clients.

Founded in 2018 with a focus on sustainable Bitcoin mining, IREN has evolved into a next-generation digital infrastructure provider. Its operational expertise in large-scale data centers, combined with low-cost power contracts, gives it a competitive edge in the race to power AI.

Friday's trading volume appeared strong as the stock tested recent resistance levels following days of AI sector momentum. Technical observers noted potential for continued upside if positive updates on deployments or new customer wins emerge.

As IREN prepares for its fiscal third-quarter results in May, attention will focus on hashrate trends, AI revenue progress, GPU deployment timelines and any commentary on additional financing or contracts. Management has signaled that 2026 will be a pivotal "year of proof" for the AI strategy.

For investors, IREN represents a high-risk, high-reward bet on the convergence of cryptocurrency infrastructure and artificial intelligence. While Bitcoin mining provides near-term cash flow, the real upside lies in transforming stranded or underutilized power assets into premium AI compute capacity.

With over 4.5GW of potential and a clear roadmap to hundreds of thousands of GPUs, IREN is positioning itself as a key enabler in the AI revolution. Whether it can deliver on its lofty revenue targets amid execution and dilution risks will determine if the stock's recent surge marks the start of a new growth chapter or another volatile chapter in its transformation story.