IREN Stock Surges 16% as $4B AI Cloud Target Signals Mining Pivot

Woofun AI reports that IREN, a Bitcoin miner, executed a decisive strategic pivot toward AI cloud services, triggering a sharp market rally. Co-CEO Daniel Roberts announced the company’s shift in focus, highlighting substantial new commercial agreements that redefine its revenue trajectory beyond traditional mining operations.

The financial implications were immediate, with shares climbing 15.7% on Monday after the firm raised its year-end AI cloud annualized run-rate revenue target to more than $4 billion. This projection is anchored by $2.8 billion in new multi-year cloud services contracts secured from prominent AI developers.

Notably, approximately 85% of this revised revenue target is already under contract, with key clients including Microsoft, Nvidia, Perplexity, and Figure AI.

Woofun AI data shows that the CoinShares Bitcoin Mining ETF (WGMI) rose 9.61%, reflecting broader sector momentum. IREN stock constitutes the fourth-largest holding in this fund, representing 10.05% of assets.

Structurally, the company plans to deliver 480 megawatts of AI cloud capacity in 2026, a massive increase from roughly 3 MW in the prior year, with 1.2 gigawatts targeted for 2027. Demand from hyperscalers, enterprises, and AI developers continues to outstrip available and planned capacity.

Furthermore, recent customer agreements include prepayments covering about 45% of associated GPU capital expenditures, significantly reducing funding requirements for these deployments.

This expansion aligns with Bernstein’s April assessment that IREN’s AI cloud business will become its primary revenue driver as it repurposes mining infrastructure for AI computing. The move underscores a broader industry trend where Bitcoin miners are increasingly expanding into AI and high-performance computing to diversify revenue streams.