IREN shifts from Bitcoin mining to AI cloud with $10B Microsoft deal, targeting $3.7B ARR by 2026

IREN Limited is transitioning from Bitcoin mining to AI cloud infrastructure, leveraging renewable energy assets and key partnerships. The company secured a $10 billion contract with Microsoft and a major partnership with Nvidia, aiming for $3.7 billion in annual recurring revenue by 2026, with $3.1 billion already contracted. Despite a high price-to-sales ratio and current losses, IREN's $2.6 billion cash reserve and aggressive expansion plans support its premium valuation. The stock is rated a Buy for near-term growth, though long-term risks exist if AI demand stabilizes.