IREN Signs Landmark $9.7B Microsoft AI Cloud Deal

Reddit discussions on r/wallstreetbets and related investing subreddits show strong investor interest with mixed sentiment:

• Trading Regret
  : Multiple users reported missing the entry or selling early, with one user (fikezof) selling at a loss after buying at $68, while another (Jaybeltran805) took profits at $37 Reddit

• Insider Trading Speculation
  : Users hv876 and Wowmuchrya highlighted suspicious timing of large call purchases last week, suggesting potential insider knowledge ahead of the announcement

• Peer Comparisons
  : CIFR was mentioned as a comparable company with a $5.5B AWS deal, with users rioferdy838 and I_am_Nerman discussing relative neocloud exposure

• Capacity Focus
  : User unibash emphasized IREN’s 3 GW power pipeline and noted that Microsoft represents only 12% allocation, suggesting significant upside potential remains

• Entry Timing Concerns
  : Several users sought advice on whether it’s too late to buy, with ak939 asking about day-trading opportunities and Sajgon107 questioning if they missed the move

The research confirms and expands on Reddit discussions with concrete deal details:

• Contract Terms
  : Five-year, $9.7 billion agreement providing Microsoft access to Nvidia GB300 GPUs, with 20% prepaid upfront TechCrunch

• Infrastructure Deployment
  : Services will be hosted at IREN’s facility in Childress, Texas, with IREN separately purchasing $5.8 billion in GPUs and equipment from Dell Technologies Yahoo Finance

• Market Reaction
  : Shares surged 20-30% in premarket trading, with Cantor Fitzgerald raising its price target to $142 from $100 while maintaining an overweight rating The Miner Mag

• Revenue Impact
  : The deal generates approximately $1.94 billion in annualized revenue while utilizing only 10% of IREN’s total data capacity, leaving significant room for additional customers Morningstar

The Reddit discussions and research findings align closely, with both sources recognizing the transformative nature of this deal. Reddit users correctly identified the power pipeline advantage and Nvidia connection, while research provides the concrete financial terms and market validation. The insider trading speculation on Reddit appears plausible given the sharp premarket move and reported unusual call activity preceding the announcement.

The deal represents a strategic pivot for IREN from Bitcoin mining to AI infrastructure, with Microsoft serving as an anchor tenant that provides legitimacy in the AI cloud sector. The fact that this utilizes only 10% of capacity suggests significant room for growth, supporting Reddit user unibash’s thesis about remaining upside potential.

• Additional Capacity
  : 90% of data capacity remains available for new customers
• Strategic Validation
  : Microsoft deal provides credibility for attracting other enterprise clients
• Power Pipeline Advantage
  : 3 GW power pipeline positions IREN favorably in power-constrained AI infrastructure market
• Prepayment Structure
  : 20% upfront payment improves cash flow and reduces execution risk

• Execution Risk
  : $5.8 billion equipment purchase from Dell requires significant capital deployment
• Concentration Risk
  : Despite being only 10% of capacity, Microsoft represents a significant single customer
• Valuation Concerns
  : 20-30% premarket surge may price in much of the near-term upside
• Competitive Pressure
  : Other Bitcoin miners pivoting to AI could increase competition for power and customers