IREN Limited has reported an 11.7% surge in share value over the past month due to its transition from Bitcoin mining to AI cloud infrastructure. The company signed $2.8 billion in new multi-year cloud services contracts in July, accounting for approximately 85% of its $4 billion annualized revenue target for AI Cloud by year-end 2026.
As of the third quarter of fiscal 2026, IREN’s AI Cloud Services revenues skyrocketed to $33.6 million, yet Bitcoin mining still comprised $111.2 million, representing a 21.3% year-over-year decline. Notably, the company trades at a forward sales multiple of 4.59X, significantly higher than the industry average of 2.58X, raising expectations for execution amidst a challenging transition.
Additionally, Microsoft has accepted Horizon 1 at IREN’s Childress campus as part of a five-year, $9.7 billion agreement, further securing IREN’s position in the AI cloud market. The company has received Exemplar Cloud status from NVIDIA for its GB300 NVL72 deployment, strengthened by crucial delivery milestones, although sustainability of growth amidst declining mining revenues remains a concern for investors.
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