IREN Jumps 10% as Microsoft Accepts First AI Data Center Under $9.7 Billion Deal

IREN Ltd. (NASDAQ:IREN) shares jumped over 10% Thursday after Microsoft Corp. (NASDAQ:MSFT) formally approved Horizon 1, clearing the first of four AI data centers IREN is building under their five-year, $9.7 billion cloud services deal.

The milestone may be the clearest evidence yet that the company’s multibillion-dollar pivot from Bitcoin mining toward AI infrastructure is delivering.

Microsoft Signs Off on First IREN AI Deployment

Horizon 1 is a 50-megawatt deployment of Nvidia Corp. (NASDAQ:NVDA) GB300 systems at IREN’s Childress, Texas, campus. It is the first of four such facilities scheduled for 2026, which will together supply 200 megawatts of capacity.

The sign-off means more than finished construction. Microsoft has a contractual five-day window to test each GPU deployment against agreed criteria. Once accepted, the service term begins and IREN can start invoicing Microsoft monthly.

Nvidia separately granted Horizon 1 Exemplar Cloud status after testing the systems. The contract is expected to generate roughly $1.94 billion in annualized revenue once all four Horizons are running.

From Bitcoin Miner to Microsoft AI Supplier

IREN listed on the Nasdaq in 2021 describing itself as a Bitcoin mining company, and its accounts show how recent the pivot is. The company reported $511.5 million in Bitcoin mining revenue over the nine months through March, against $58.3 million from AI Cloud.

Management now targets more than $4 billion in AI Cloud annualized run-rate revenue by year-end, with roughly 85% already under contract.

The shift comes as Bitcoin remains under pressure. Bitcoin (CRYPTO: BTC) trades near $63,500, roughly half its October 2025 record, and traders on Polymarket currently put the chances of it touching $55,000 this year at 56%..

The Microsoft buildout gives investors exposure to AI infrastructure just as IREN’s original core market struggles.

The Pivot Still Comes With a Huge Price Tag

The deal requires roughly $5.8 billion in GPUs and related equipment purchased through Dell Technologies Inc. (NYSE:DELL). Microsoft is due to pay 20% of the contract value upfront across the four tranches, while IREN has secured $3.6 billion in GPU financing.

Famed short-seller Jim Chanos has questioned the economics, warning, “This is a financing deal, w/IREN taking all the risk.”

Thursday’s acceptance clears the first major execution hurdle, with Horizons 2-4 still due later this year. Whether the returns justify the capital remains open, but IREN just showed a Bitcoin miner can build the infrastructure powering the AI trade.

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