Iren announced today a monumental $9.7 billion agreement with Micosoft, a “neocloud” company. This deal is for the purchase of AI cloud capacity. The news validates the growing Bitcoin miners’ transition to AI as a key strategic move in the tech sector. IREN shares reacted upward immediately.
The contract will have a five-year duration. Under the terms, Microsoft will gain access to AI systems based on Nvidia GB300. These systems will be hosted at IREN’s facilities in Texas. To fulfill the agreement, IREN will make a massive investment. It will buy $5.8 billion in GPUs (graphics processing units) from Dell Technologies. Furthermore, IREN, formerly known for its Bitcoin mining operations, expects to generate $1.9 billion in annualized revenue from this contract.
This deal marks one of the largest commercial validations for the emerging “neocloud” sector. This term refers to data center firms that evolved from Bitcoin mining. IREN thus joins other companies like CoreWeave and Crusoe. These firms are redeploying their energy-intensive infrastructure to meet artificial intelligence workloads. The move is significant, as it shows how miners’ once-volatile hardware is now seen as a strategic asset.
Is mining hardware the new pillar of AI infrastructure?
Microsoft’s decision underscores a critical reality in the current tech market. There is a global shortage of GPU capacity. Giants like Microsoft urgently need more computing power for their services, such as Azure AI. Therefore, they are turning to leasing contracts with these new “neocloud” providers. These providers bridge the gap between blockchain and AI. They use their expertise in managing large-scale energy operations for a new purpose.
The market reaction was immediate and forceful. IREN shares soared more than 30% in pre-market trading. This surge adds to an impressive 500% rally accumulated this year. This boom has been driven almost entirely by the demand for AI hardware. The deal doesn’t just benefit IREN. It also sets a precedent for other mining companies looking to diversify their revenue streams.
This multi-billion dollar agreement could be the definitive catalyst. The Bitcoin miners’ transition to AI is no longer a speculative trend. It is now a business strategy validated at the highest level. More miners are expected to explore this route, transforming the digital infrastructure landscape. The synergy between mining infrastructure and AI demand appears to be one of the dominant narratives of 2025.
