Overview
- Iren stock dropped Monday after the company proposed $2 billion in convertible notes, reversing part of Friday’s surge on its new Nvidia partnership.
- Nvidia’s agreement includes up to 5 gigawatts of DSX‑aligned AI infrastructure, a five‑year managed GPU services contract reportedly worth $3.4 billion, and an option to buy up to 30 million IREN shares at $70.
- The pullback followed IREN’s fiscal Q3 revenue of $144.8 million, which missed the $223.4 million consensus and highlighted strain in its legacy bitcoin business.
- JPMorgan raised its price target but kept an Underweight rating, warning of ‘circular’ deal economics and no firm guarantees on Nvidia GPU allocations that IREN needs to hit its deployment goals.
- The partnership caps a pivot toward AI infrastructure that also includes a prior $9.7 billion Microsoft agreement, positioning IREN among ‘neocloud’ operators racing to secure scarce GPUs.