IREN’s Spanish Bet and Nvidia Ties Fuel a 34% Weekly Surge Despite a $248 Million Loss

IREN posts $248M loss as Bitcoin mining fades, but AI cloud revenue doubles and shares soar on Nvidia partnership and European data center expansion.

The numbers are ugly. The stock is flying. IREN’s third-quarter results read like a tale of two companies — one bleeding cash from a dying Bitcoin mining operation, the other racing to build the next generation of AI infrastructure. Investors are betting heavily on the latter.

The data center operator posted a net loss of nearly $248 million for the fiscal third quarter, with revenue sliding to $144.8 million. Management blamed lower Bitcoin prices and the decommissioning of old mining hardware as it converts its facilities to house powerful graphics processors. Yet shares closed Friday at €51.91 in Frankfurt, up more than 7% on the day and nearly 34% for the week. The stock has multiplied more than sevenfold year-to-date, riding the wave of artificial intelligence enthusiasm.

A 490-Megawatt European Land Grab

The catalyst for the latest leg higher came in two parts. First, IREN announced the acquisition of Nostrum Group, a Spanish data center developer, securing 490 megawatts of grid-connected power capacity in one fell swoop. The deal pushes IREN’s total portfolio to five gigawatts. Financial terms were not disclosed. Spain’s abundance of renewable energy and supportive regulatory environment make it an attractive location for building large-scale AI data centers, the company said.

Second, the company revealed a strategic partnership with Nvidia, adding the chip giant to its customer roster alongside Microsoft. The combination sent shares soaring more than 20% in after-hours trading before the regular session gains were factored in.

Cloud Revenue Doubles as Mining Fades

While the headline numbers look grim, the underlying shift is gaining momentum. Revenue from AI Cloud Services nearly doubled to $33.6 million. IREN pointed to contracted annual recurring revenue of $3.1 billion, with a longer-term target of generating $3.4 billion in annual AI revenue from its secured power capacity by the end of 2026. A separate management target cited $3.7 billion in recurring revenue by calendar 2026, reflecting the rapid scaling ambitions.

The transformation is capital-intensive. Capital expenditures exceeded $1.4 billion in the quarter alone. The company ended April with $2.6 billion in cash, providing a cushion for the buildout. IREN aims to reach 480 megawatts of operational capacity this year and 1,210 megawatts by 2027.

Analysts Split on Valuation

Wall Street remains divided on how to price the turnaround. Goldman Sachs raised its price target to $44 but still sees the stock as overvalued at current levels. BTIG lifted its target to $80, while HC Wainwright set a $85 price target. The average analyst target on the Street has climbed to roughly $74.

The extreme volatility — an annualized reading of around 120% — underscores the uncertainty. Every update on GPU installations and customer billing will drive the next moves, the market is betting the execution will match the ambition.

The Nostrum acquisition still requires regulatory approval. For now, the clock is ticking on IREN’s ability to bring its Spanish sites online and convert its secured power into the promised revenue stream.