IREN shares surged 17% following the company's announcement of significant AI cloud contracts, with the stock trading at $36.54 during premarket hours. According to reports from The Wall Street Journal, the Nasdaq-listed stock rose as investors welcomed fresh signs that the former bitcoin mining company is gaining traction in the AI infrastructure market. The strong market response reflects investor confidence in the company's strategic pivot from cryptocurrency mining to artificial intelligence infrastructure.
IREN secured $2.8 billion in new multi-year AI cloud services contracts, as reported by GlobeNewswire. The company's customer base now includes major AI developers such as Microsoft, Nvidia, Perplexity, Figure AI, Together AI, Fluidstack, Fireworks AI, Fal AI, Hume AI and an unnamed AI developer. The contracts cover both bare metal infrastructure and managed cloud services, demonstrating the company's comprehensive AI infrastructure capabilities. This represents a significant expansion from the company's previous operations in bitcoin mining.
The company raised its year-end 2026 revenue target to above $4 billion from its previous projection of $3.7 billion, according to GlobeNewswire. IREN reported that about 85% of the revised annualised run-rate revenue target is now backed by signed contracts, providing strong visibility for future revenue growth. This contracted revenue base represents a significant milestone in the company's AI infrastructure development strategy and demonstrates the growing demand for AI cloud services.
IREN maintains a strong financial position with cash reserves of $7.6 billion as of June 30, 2026, as reported by GlobeNewswire. The latest contracts include customer prepayments covering about 45% of the related GPU capital expenditure, reducing the company's own funding requirement for those deployments. The company has also accelerated its infrastructure expansion plans, increasing capacity from 3MW to 480MW of AI Cloud capability within 12 months, positioning itself to capitalize on the growing demand for AI infrastructure services.
