IREN Limited, the company formerly known as Iris Energy, has locked in deals worth a combined $13.1 billion with Microsoft and NVIDIA to provide AI cloud infrastructure, but bridging the gap between promise and reality requires a staggering amount of capital.
The numbers behind the pivot
IREN has secured over 4.5 GW of power capacity across North America for AI and high-performance computing workloads.
The headline contracts are eye-catching. A $9.7 billion multi-year deal with Microsoft for AI cloud services and a separate $3.4 billion GPU cloud services agreement with NVIDIA.
IREN’s plan to raise between $2.6 billion and $3 billion through upsized convertible note offerings in 2026 is just one piece of the puzzle. The company has also obtained approximately $3.6 billion in GPU financing facilities at interest rates below 6%. It has expanded its ATM equity program to as much as $6 billion. And in May 2026, the NVIDIA partnership included a $2.1 billion equity investment option for IREN.
Dilution risks and analyst skepticism
That $6 billion ATM equity program means the company can sell new shares directly into the open market whenever it wants, at prevailing prices. JP Morgan has assigned IREN a reflective underweight rating. The concern isn’t about demand for AI infrastructure, which is booming. It’s about whether IREN can execute at this scale without destroying shareholder value in the process.
The convertible notes add another layer of complexity. When those notes eventually convert to equity, they’ll create additional dilution. IREN has also been making acquisitions to expand its footprint. The purchase of Nostrum Group in Spain adds 490 MW of capacity and marks the company’s entry into the European market.
The broader crypto miner migration
IREN isn’t operating in a vacuum. The pivot from Bitcoin mining to AI infrastructure has become something of an industry trend, with multiple former crypto miners eyeing the same opportunity. Bitcoin miners already have relationships with power providers, land with grid connections, and experience managing high-density computing operations. AI data centers need all of those things, though AI workloads demand significantly more sophisticated cooling, redundancy, and uptime guarantees than Bitcoin mining rigs.
The customer prepayments IREN has secured help offset some capital expenditures. Watch the conversion timeline on those notes, the pace of ATM share sales, and whether IREN can maintain its GPU financing rates as it scales.