According to Woofun AI, IREN (IREN.US) has completely removed the single label of Bitcoin mining companies and officially established its market position as a core supplier of artificial intelligence infrastructure. By signing multi-billion dollar strategic agreements with tech giants such as Microsoft (MSFT.US), Nvidia (NVDA.US), and Dell Technologies (DELL.US), the company successfully turned its transformation vision into tangible commercial results.
This strategic reshaping is not only reflected in fundamental changes in the business structure, but also directly reflected in positive feedback from the capital market — IREN (IREN.US)'s stock price has experienced two significant sharp rises in the past two months, indicating that the market's recognition of its transformation from crypto mining to AI computing power services is rapidly increasing.
The cornerstone of IREN (IREN.US)'s transformation into the field of artificial intelligence lies in a major five-year cloud service agreement with Microsoft (MSFT.US). The total value of the contract was as high as $9.7 billion, of which 20% was to be paid immediately upon signing the contract, providing sufficient cash flow support for the commencement of the project. Once the project is fully operational, it is expected to bring IREN (IREN.US) stable revenue of approximately $1.94 billion each year, which has built a solid revenue moat for it while expanding its AI cloud business. More importantly, this agreement has begun to be translated into actual infrastructure deployment. IREN (IREN.US) has successfully completed the first of four 'Horizon' AI cloud projects—'Horizon 1' for Microsoft (MSFT.US). The project is located at the IREN (IREN.US) plant in Childress, Texas, and is a 50 megawatt liquid-cooled facility. Nvidia (NVDA.US) awarded IREN (IREN.US) the “Model Cloud” title after rigorous testing of the project's GB300 NVL72 system.
This certification is extremely high in the industry, meaning that NVDA.US (NVDA.US) has personally verified the IREN (IREN.US) infrastructure's ability to handle high-load artificial intelligence tasks, laying the foundation for its technical reputation to take on more top customer orders in the future.
IREN (IREN.US)'s production capacity expansion blueprint shows an astonishing growth rate. Its artificial intelligence cloud production capacity grew rapidly from around 3 megawatts a year ago to 480 megawatts in 2026. By 2027, the company aims to further increase production capacity to 1.2 gigawatts, which means that in just two years, its production capacity will explode by more than 100 times.
It is worth noting that this aggressive expansion plan is not in the air, but is supported by a clear schedule and orders. According to data compiled by Woofun AI, after receiving a new contract of 2.8 billion US dollars, IREN (IREN.US) raised its 2026 annualized revenue target to more than 4 billion US dollars, and currently about 85% of this target has received contract guarantees. Its customer list has also expanded significantly to include well-known AI companies such as Together AI, NVDA.US (NVDA.US), Figure AI, Perplexity, and Fluidstack.
In just a few weeks, IREN (IREN.US) announced benefits one after another: first, it announced that it had signed new multi-year contracts worth $2.8 billion with several artificial intelligence developers, raising the annual revenue target to more than $4 billion, and customer advance payments are expected to cover about 45% of GPU expenses associated with these contracts; then it was confirmed that Microsoft (MSFT.US) has received and put the 'Horizon 1' project into use. After the news was announced, IREN (IREN.US)'s stock price rose nearly 8% and pre-market rose 6%, respectively. These two pieces of news confirm the effectiveness of its artificial intelligence infrastructure strategy from the two dimensions of order acquisition and delivery capabilities.
However, the transformation journey has not been painless. IREN (IREN.US) was founded in 2018, is headquartered in Sydney, Australia, and initially focused on Bitcoin mining. Over the past 12 months, although its stock price has risen by nearly 12%, its performance is still slightly lower than the S&P 500 index, which rose about 14% over the same period.
This slight lag is mainly due to the huge costs it has incurred during its transition from Bitcoin mining to artificial intelligence infrastructure. In fiscal year 2026, although revenue from its artificial intelligence cloud service business increased nearly eight times, the company experienced a net loss of $684 million due to non-cash impairment losses due to the phasing out of Bitcoin mining equipment. According to the financial report for the fourth quarter of fiscal year 2026 released on August 27, the company's revenue rose to US$137.2 million, driven by the continued development of the artificial intelligence cloud business, but it was still lower than Wall Street's estimate of US$157.1.4 million. Chief Financial Officer Anthony Lewis pointed out that by the end of the fourth quarter, the company's annualized revenue was about $500 million, and it is still signing long-term cloud computing contracts with companies such as Cohere, Perplexity, Figure AI, and Fal AI. Looking ahead, management is extremely optimistic about next year's development prospects, with annualized revenue expected to exceed $4 billion by December.
Additionally, approximately $700 million in revenue related to Nvidia (NVDA.US) cloud service contracts, which is expected to be realized only in 2027, has not been factored into the current forecast. To support this growth, IREN (IREN.US)'s capital expenditure for the 2027 fiscal year is expected to be between $25 billion and $30 billion, which will be used mainly to meet Microsoft's (MSFT.US) business needs, meet other revenue targets set in 2026, and build air-cooled facilities and additional liquid-cooled facilities.
Wall Street analysts remain highly optimistic about IREN (IREN.US)'s prospects. In the first two weeks of September, several agencies raised their ratings. On September 14, J.P. Morgan Chase (JPM.US) analyst Richard Zhao raised IREN (IREN.US)'s rating to 'buy' and gave a target price of $65, which means the stock still has room to rise 54% from the current price. Similarly, BTIG's analyst Gregory Lewis also maintained a 'buy' rating for IREN (IREN.US) with a target price of $80, which corresponds to 90% upside. Taken together, according to the opinions of 14 Wall Street analysts who have followed the stock, IREN (IREN.US) has an overall rating of 'Strong Buy', of which 12 analysts gave a 'Strong Buy' rating and 3 gave a 'Hold' rating. The median price target given by these analysts is $77, which means the stock still has room to rise 83% from its current price. As the 'Horizon 2' to 'Horizon 4' project progresses, whether IREN (IREN.US) can continue to deliver on its delivery promises will be a key variable in determining whether its stock price can break through further.