IREN Stock Jumps 20% on $2.8 Billion AI Cloud Deal

IREN Limited saw its stock price climb nearly 20% on Monday following the announcement of $2.8 billion in new customer contracts. The company, which originally focused on Bitcoin mining, is successfully repositioning itself as a provider of cloud infrastructure for artificial intelligence. With this update, IREN increased its 2026 revenue target to over $4 billion, noting that about 85% of that goal is already under contract.

The company now counts major names like Microsoft and NVIDIA among its clients. This shift is part of a larger trend where crypto mining firms are pivoting toward data centers to secure recurring revenue that is not tied to the volatility of Bitcoin prices. Other mining companies like Hut 8 and CleanSpark are also seeing gains as investors begin to value these businesses more like utility providers than traditional crypto miners.

While the market reaction was positive, some analysts point to the high cost of building AI infrastructure. IREN currently has significant funding requirements to meet its aggressive growth targets, though the company emphasizes that customer prepayments help manage these capital needs. IREN held roughly $7.6 billion in cash at the end of June, providing a cushion for its ongoing expansion.

Technically, the stock showed strength by bouncing off a key support level near $33. Investors are now watching the $47 mark, which serves as the next major point of resistance. While Monday's move was a strong signal, traders will be looking for a clear breakout above that $47 level to confirm that the trend has turned firmly upward.