IREN Limited (NASDAQ: IREN), a Bitcoin miner pivoting to AI infrastructure, saw its shares jump more than 25% in after-hours trading after announcing a strategic partnership with Nvidia to build next-generation AI data centers. The collaboration aims to deploy up to 5 gigawatts of NVIDIA DSX-aligned infrastructure across IREN’s global pipeline, with Nvidia receiving warrants to buy up to 30 million shares at $70 each over five years – a potential $2.1 billion equity stake if fully exercised.
“AI factories are becoming foundational infrastructure for the global economy,” said Jensen Huang, founder and CEO of Nvidia, in a press release. “Deploying these systems at scale requires deep integration across the full stack – compute, networking, software, power and operations. IREN brings the scale and infrastructure expertise to help accelerate the buildout of next-generation AI infrastructure globally.”
The flagship deployment is planned for IREN’s 2 GW Sweetwater campus in Texas, which will be a showcase for Nvidia’s DSX architecture. The deal follows IREN’s $625 million all-stock acquisition of cloud software firm Mirantis earlier in the week.
Despite the AI momentum, IREN’s quarterly results revealed a sharp decline in its traditional Bitcoin mining business. Revenue fell 22% to $144.8 million from $184.7 million in the prior quarter, reflecting a lower average Bitcoin price and the removal of older mining hardware to make room for new GPU systems. The company reported a net loss of $247.8 million, wider than the $155.4 million loss in the previous quarter, with $140.4 million in non-cash impairments from retired mining equipment and $23.7 million in unrealized losses tied to convertible notes.
“The world is structurally short compute, and the bottleneck is delivered data center and GPU capacity,” said Co-Founder and Co-CEO Daniel Roberts. IREN is replacing old ASIC miners with air-cooled Blackwell GPUs under a five-year, $3.4 billion AI Cloud contract with Nvidia, with customer ramp-up expected from early 2027. The company also has a $9.7 billion contract with Microsoft and aims to grow its annual recurring revenue under contract from $3.1 billion to $3.7 billion by year-end 2026.
IREN’s expansion plans include reaching 480 MW in 2026, 1,210 MW in 2027, and further capacity at Sweetwater and Kiowa from 2028. It also agreed to buy Ingenostrum SL, a Spanish data center developer, adding 490 MW of grid-connected power in Europe.
IREN shares traded above $71 in Thursday’s after-hours session before settling near $68, up more than 30% year-to-date.
