IREN Targets $3.7 Billion in AI Cloud Revenue as $3 Billion Bond Backs Nvidia and Dell Deals

IREN secures $3.4B Nvidia contract and $3B bond to build AI data centers, targeting $3.7B annual revenue from 150,000 GPUs by year-end.

IREN Limited is no longer content to be known as a Bitcoin miner. The company, formerly Iris Energy, has locked in a five-year, $3.4 billion contract with Nvidia for AI cloud services, while planning roughly $3.5 billion in GPU purchases and infrastructure through Dell. These partnerships, paired with an existing Microsoft agreement, give the group a contract backlog that dwarfs its mining heritage.

The scale of the ambition was underscored on May 15, when IREN closed a $3 billion convertible bond issuance — including a fully exercised $400 million greenshoe. Net proceeds came in around $2.96 billion. The notes carry a 1% coupon, mature in 2033, and were priced with a 32.5% conversion premium on the then-share price of $55.15. Roughly $201 million was carved out for capped-call transactions designed to limit dilution for existing shareholders when conversions occur. The remainder is earmarked for the build-out of AI data centers.

That build-out has concrete near-term targets. By year-end, IREN aims to have 480 megawatts of AI cloud capacity online, powered by 150,000 GPUs. The company projects that this will generate $3.7 billion in annual recurring revenue. Looking further out, it is assembling a global power portfolio of 5 gigawatts, positioning itself not as a niche provider but as a platform for energy-intensive high-performance computing.

The financial results so far tell a story of transition. In the third fiscal quarter of 2026, IREN posted revenue of $144.8 million, a miss against analyst estimates. Yet the AI cloud segment surged 94.2% quarter on quarter — a pace that underscores how quickly the business model is shifting away from digital-asset mining.

Wall Street's reaction is mixed. Some analysts are looking for revenue growth of roughly 66% in fiscal 2026 and more than 235% in 2027, handing the stock an "Outperform" rating and pointing to IREN's self-owned power pipeline as a lasting competitive edge. Others urge caution, citing the complex corporate structure and the uncertain availability of high-end Nvidia GPUs as persistent risks.

The share price reflects that tension. IREN closed at €45.63 on Friday, down 8.47% on the day and roughly 12% lower on the week. Still, the stock has more than doubled since the start of the year and has multiplied roughly sixfold over the past twelve months.

What comes next is execution. The capital is in place and the partnerships are signed. The market now wants to see those GPU deployments translate into contracted AI cloud revenue — quarter after quarter. If IREN can deliver on its $3.7 billion recurring revenue target, the re-rating will have real substance. If the announcements outpace the results, the stock's recent volatility may be just the beginning.