IREN Limited is transitioning from Bitcoin mining to becoming a major AI cloud infrastructure operator, planning to scale up to 150,000 GPUs. The company has raised its additional share issuance limit to $6 billion, which may dilute existing shareholders by up to 37.5%, but this move enables non-debt financing for GPU acquisitions and capacity expansion. A significant $9.7 billion, 5-year cloud contract with Microsoft supports IREN's forecasted annual recurring revenue (ARR) of up to $3.7 billion. Despite some revenue volatility and negative earnings per share, IREN's strong cash position, manageable capital expenditures, and strategic positioning in AI infrastructure underpin a bullish outlook and a 'Buy' rating from analysts.
