IREN Limited has secured a massive $3.6 billion financing package to fuel its artificial intelligence cloud computing expansion under a contract with Microsoft. The deal, arranged through the company’s wholly owned subsidiary IE US Hardware 3 LLC, was signed on May 29, 2026, and consists of a $1.5 billion delayed draw term loan and $2.1 billion in senior notes with a fixed rate of 5.96%, both maturing on December 31, 2031.
The term loan was coordinated by Goldman Sachs Bank USA and JPMorgan Chase Bank, while the senior notes were privately placed. The financing earned investment-grade ratings of A from Fitch and A(low) from DBRS, marking what IREN called “the highest publicly rated investment-grade GPU financing announced and the first GPU financing in the U.S. private placement market.” Those strong ratings helped the company achieve a blended borrowing cost of approximately 6%.
The structure resembles project finance rather than a typical corporate bond sale. The obligations of IE US Hardware 3 LLC are secured by the GPUs purchased, a pledge of the subsidiary’s equity interests, and the cash flows generated directly from the Microsoft contract. IREN itself provides only limited parent guarantees, tied to the performance of managed services and any potential payment shortfall if Microsoft terminates a GPU services tranche. The financing covers roughly 96% of the $5.81 billion in GPU capital expenditures linked to the Microsoft deal, with the remainder coming from customer prepayments.
This funding arrives just weeks after IREN closed a $3 billion convertible notes offering, further strengthening its balance sheet. The company, originally known for Bitcoin mining, has aggressively repositioned itself as an AI infrastructure provider over the past year, signing the multibillion-dollar cloud agreement with Microsoft in late 2025 and later partnering with Nvidia for a large-scale AI compute buildout. “Securing investment-grade financing on these terms reflects both the quality of our customer contracts and the fact that we own the data center infrastructure these GPUs run in,” said co-founder and co-CEO Daniel Roberts.
Bernstein analysts had previously flagged IREN’s AI pivot as capital-intensive, but also highlighted the firm as one of the best-positioned former Bitcoin miners to capture AI infrastructure demand. IREN stock was trading around $62.07, down 2.31% shortly after the announcement, having recently touched a six-month high above $68.
