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2w ago

IREN Lands $2.8 Billion in AI Cloud Contracts and Raises 2026 ARR Target Above $4 Billion

Prepaid customer contracts cut near‑term GPU funding needs with revenue conversion contingent on successful GPU delivery, commissioning and customer acceptance.

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Approximately 85% of IREN's $4 billion-plus ARR target is now under contract.
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Overview

  • IREN disclosed on Monday that it signed $2.8 billion of new multi‑year AI cloud contracts and raised its year‑end 2026 AI Cloud annualized run‑rate revenue target from $3.7 billion to more than $4 billion.
  • The company says roughly 85% of the updated ARR target is now covered by signed agreements with customers including Microsoft, NVIDIA and several AI developers.
  • Recent deals include customer prepayments equal to about 45% of the related GPU capital expenditure, which materially reduces IREN’s near‑term funding requirement for those deployments.
  • IREN plans to deliver 480 megawatts of AI Cloud capacity in 2026 and target 1.2 gigawatts in 2027, but the company’s operating metric will only convert into GAAP revenue after GPUs are delivered, commissioned, tested and accepted by customers.
  • As of June 30, IREN reported about $7.6 billion in cash and cash equivalents and faces execution and supply risks that investors will watch as the company scales GPU deployments and begins to show AI cloud revenue in upcoming quarterly results.