IREN Limited Secures $3.4 Billion Nvidia Contract Amid Bitcoin Mining Challenges

IREN Aktie: 3,4-Milliarden-Nvidia-Vertrag

IREN Limited, formerly known as Iris Energy, is currently navigating a challenging landscape as its Bitcoin mining business faces declining margins. In contrast, the company is experiencing rapid growth in its AI cloud business, bolstered by significant contracts with Nvidia. The outcome of this balancing act will determine the future trajectory of the stock.

On Friday, IREN's stock rose by 7.82% to €36.60. However, over the past 30 days, the stock has seen a decline of 35.19%, with a weekly loss of 12.27%. Despite this, the stock has increased by 154.45% over the past twelve months, although it remains 46.66% below its all-time high of €68.61 from November 2025.

"The costs are outpacing revenues, with the production cost of a Bitcoin currently around $78,000, while it trades at approximately $62,500."

The core issue for IREN lies within its Bitcoin mining operations. In the first quarter of 2026, publicly traded Bitcoin miners sold over 32,000 BTC, surpassing the total sales for the entire year of 2025. This situation is exacerbated by low hash prices following the recent halving, which is significantly impacting miners' margins.

Recognizing this dependency, IREN has diversified its operations. The company operates its own data centers powered entirely by renewable energy, which positions it advantageously for its AI expansion. Nvidia has designated IREN as its preferred partner, leading to a five-year contract worth $3.4 billion for AI cloud capacities, covering 60 megawatts of computing power at the Childress, Texas data center.

Additionally, Nvidia has established an investment structure of $2.1 billion linked to the deployment of graphics processors in IREN's facilities. The company is rapidly advancing its infrastructure, with the commissioning of a 1.4-gigawatt substation at its West Texas site moved up to April 2026. IREN plans to achieve 480 megawatts of AI cloud capacity in 2026, increasing to 1,210 megawatts in 2027, supported by a secured energy pipeline of 5.8 gigawatts.

Ambitious revenue targets have been set, with the annualized AI cloud revenue rate expected to exceed $500 million by the first quarter of 2026, and management aiming for $3.4 billion by the end of 2026.

"The technical indicators currently do not provide a clear answer regarding the stock's volatility."

The question remains whether such a rapid shift from Bitcoin mining to AI infrastructure can effectively stabilize the stock's volatility, or if IREN will continue to be viewed as a high-risk investment with two parallel challenges. The technical indicators suggest uncertainty, with the RSI at 35.8 indicating potential selling pressure. The annualized 30-day volatility stands at 94.14%, reflecting the market's indecision between the two business segments.

Currently, the stock is 21.71% below the 50-day average of €46.75, as well as below the longer-term averages of the past 100 and 200 days, indicating an ongoing short-term downtrend despite the recent daily gain. The true test will come with the next quarterly results, which will reveal whether AI cloud revenues are growing at the pace promised by Nvidia contracts and capacity plans.

In summary, IREN is at a crossroads with two distinct narratives: one of decline in its Bitcoin mining operations and another of growth in its AI cloud business. Investors are left to ponder whether to buy or sell based on the latest developments.

Key Takeaways:

• IREN's stock rose by 7.82% to €36.60, but has seen a 35.19% decline over the past month.
• The company has secured a $3.4 billion contract with Nvidia for AI cloud capacities.
• Ambitious revenue targets include exceeding $500 million in AI cloud revenue by Q1 2026.
• Technical indicators suggest ongoing volatility and uncertainty in the stock's performance.

Source: Ad-hoc-news.de

Sources:

• IREN Aktie: 3,4-Milliarden-Nvidia-Vertrag