IREN Maps Out $3.6 Billion Nvidia GPU Splurge and $1.6 Billion Dell Deal, but Goldman Cautions on Valuation

IREN locks $3.6B in bonds and project financing for Nvidia GPUs at Texas data center serving Microsoft, accelerating pivot from bitcoin mining to AI cloud amid mixed analyst views.

IREN has locked down a $3.6 billion financing package to acquire Nvidia GPUs for a Texas data center that will ultimately serve Microsoft, accelerating its transformation from bitcoin miner to AI cloud operator. The package is split between $2.1 billion in bonds and $1.5 billion in project-specific financing, and the hardware will be deployed at the company’s Childress campus.

The funding comes on the heels of a separate five-year, $3.4 billion cloud contract with Nvidia signed in May 2026 and a $1.6 billion hardware agreement with Dell Technologies that is expected to deliver roughly 26,000 Nvidia Blackwell B200 GPUs. Together, these commitments target an annualized recurring revenue run rate of $4.4 billion from the site. Co-CEO Daniel Roberts points to “time-to-compute” as the company’s competitive edge, with the Dell systems scheduled to come online early next year.

The market’s reaction has been far from unanimous. On May 28, the stock fell 5.6% to $64.05 as profit-taking set in following a 44% rally the prior month, and selling pressure intensified after Goldman Sachs analyst Michael Ng issued a cautious note. Ng retained his Hold rating on the shares, raising his price target only modestly from $44 to $50 — a level well below the recent close of $67.84. While he acknowledged the Dell deal carried favorable pricing, he saw limited near-term upside.

Analyst opinions remain sharply divided. Cantor Fitzgerald rates the stock a Buy with a $99 target, Macquarie is Outperform at $90, and JP Morgan sits on the sidelines with a Neutral rating and a $46 target. The spread — from $46 to $99 — underscores the uncertainty surrounding IREN’s ability to execute its pivot and the speed at which its massive capital outlays will translate into revenue.

Institutional investors have shown more conviction. BlackRock boosted its stake by roughly 605% in the first quarter of 2026, building a position of 4.46 million shares valued at about $252 million. Defiance ETFs added 12.6 million shares during the same period. Yet a $3 billion convertible bond offering that closed in mid-May hangs over the stock, raising concerns about dilution and hedging-related selling pressure.

The financial picture remains transitional. In the third quarter of 2026, IREN generated revenue of $144.8 million but booked an operating loss of $238.6 million and free cash flow of negative $1.11 billion. Its price-to-earnings ratio of 144.8 far exceeds the industry average of 29.2. On the other hand, some valuation models project a fair value of $95.75 per share, based on estimated revenue of $8.7 billion by 2031. The company has also bolstered its technical capabilities through the acquisition of Awaken.

The stock currently trades at around €56.20 (roughly $60), having surged more than 640% from its 52-week low while sitting 15% below its yearly high. With the Blackwell infrastructure slated to go live in early 2027, the next major test is whether IREN can turn its ambitious spending into a steady revenue stream — a milestone that will determine whether the bulls or the skeptics have read the markets correctly.