IREN Limited Transforms from Bitcoin Miner to AI Neocloud Leader
IREN Limited (NASDAQ: IREN) has experienced a remarkable transition from a small Bitcoin mining operation to a leading AI neocloud provider, with shares skyrocketing by 284.6% in 2025. This shift was catalyzed by the company’s preferred partner status with Nvidia in August 2025, and a landmark $9.7 billion five-year deal with Microsoft announced in November 2025, projected to generate $1.94 billion in average annualized recurring revenue (ARR).
As of 2025, IREN boasts 2.91 gigawatts (GW) of grid-connected renewable power and has acquired an additional 2.75 GW of land in Texas. Currently, its operations are spread across three data centers in British Columbia, Canada, totaling 160 megawatts (MW). This substantial power capability is increasingly vital for AI operations, as many competitors lack access to sufficient electricity.
Despite its rapid growth, IREN faces challenges in funding its expansions, which require approximately $5.8 billion in capital expenditures. By the end of 2026, IREN anticipates an ARR of $3.4 billion, yet this represents only 16% utilization of its full capacity, suggesting potential revenue could reach $21.25 billion at current lease rates, highlighting both opportunity and the need for capital in the AI cloud market.
