Bitcoin News Update: IREN Redirects $9.7B from Mining to AI Cloud, Supporting Microsoft's Growth

Microsoft has signed a groundbreaking multi-year contract worth $9.7 billion with

Limited, signaling a major development in the AI cloud services sector. Announced in late October, the agreement gives access to GB300 GPUs over a five-year period, with an initial payment of 20%. IREN will upgrade its Texas facilities to handle AI workloads, according to an . This collaboration is part of Microsoft’s ongoing push to secure GPU resources as demand for AI computing grows, while IREN shifts from its origins in mining to building a fully integrated AI cloud platform, as highlighted in a .

As part of the deal, IREN will roll out the GPUs in stages at its 750MW campus in Childress, Texas, where liquid-cooled data centers are expected to support up to 200MW of critical IT load by 2026, according to El-Balad. The facility is designed with a focus on energy efficiency, which is essential for high-performance computing. To meet the contract’s requirements, IREN has also arranged a $5.8 billion procurement agreement with Dell Technologies for GPUs and related hardware, as reported by

.

To finance the expansion, IREN will use a mix of existing cash, customer prepayments, operational income, and additional funding, El-Balad noted. Daniel Roberts, IREN’s co-founder and co-CEO, described the agreement as a significant achievement, stressing its importance in establishing IREN as a reliable AI cloud provider and expanding its GPU presence across North America, according to El-Balad. Jonathan Tinter, Microsoft’s president of business development and ventures, emphasized the strategic fit of the partnership, pointing to IREN’s strengths in integrated data center management and secured power supply, as mentioned by The Outpost.

The news pushed IREN’s stock up more than 23% in pre-market trading, continuing its upward trend as the company benefits from the surge in AI hardware demand, according to a

. The agreement also highlights a wider industry movement: Bitcoin miners with energy-intensive operations are repurposing their infrastructure for AI, which provides more consistent revenue. IREN’s stock has climbed over 500% this year, fueled by its transition to AI, as reported by .

Analysts remain split on the stock’s outlook. J.P. Morgan’s Reginald Smith kept a “Sell” rating and a $24 price target, citing valuation concerns despite IREN’s strong Q3 2025 results, according to a

. On the other hand, Macquarie raised its rating on IREN to “Outperform” with an $86 target, pointing to the company’s potential to reach $500 million in annualized AI revenue by early 2026, as noted by MarketBeat.

This partnership enables Microsoft to enhance its Azure AI services during a global GPU shortage, while IREN strengthens its position as a leading neocloud company—a group moving from Bitcoin mining to AI infrastructure, as reported by Yahoo Finance. With the Texas project underway, this deal could pave the way for more large-scale partnerships in the fast-changing AI industry.